A key digital asset bill in the US Senate is stalled over a narrow dispute: should third-party firms pass stablecoin yields to customers? Banks oppose this, fearing deposit drains, while crypto firms argue it's vital for competition. This friction has held up the CLARITY Act for months.
Treasury Secretary Scott Bessent publicly urged Congress to act swiftly, emphasizing that "time is scarce, and now is the time to act." He framed the legislation as a national security priority, stating economic security is inseparable from national security.
Nearly one in six Americans already holds digital assets, and major financial institutions are entering the crypto space. Blockchain technology's integration into payments and asset trading is too significant for regulators to ignore.
Senator Cynthia Lummis supports Bessent's call, noting bipartisan progress and administration momentum. A Senate markup of the bill is anticipated, though past deadlines have been missed.
A White House analysis suggests the risk of deposit flight from stablecoin yields is "quantitatively small," though some banking officials dispute these findings, citing overlooked funding risks.