"The interest payout mechanism is the issue"…Clarity Act’s release delayed as last-minute negotiations drag on

The release of the Clarity Act, a U.S.-backed bill to establish a market structure framework for the digital asset (crypto) market, is being delayed as last-minute negotiations among the crypto industry, the financial sector and congressional staff drag on over provisions related to interest payments on stablecoins.

According to CoinDesk on the 2nd (local time), representatives from the crypto sector and the banking industry met with congressional staff that day to review a compromise proposal on stablecoin interest. The compromise under the Clarity Act had been expected to be made public this week, but has been postponed citing the need to fine-tune details.

At the center of the dispute is how interest payments tied to holding stablecoins would be handled. Under the current compromise, paying interest simply for holding a stablecoin would be prohibited, while distributing returns based on specific activities would be allowed. The crypto industry is said to have pushed back, calling for technical edits such as more detailed wording to define the nature of the returns.

According to congressional sources, the revisions currently under discussion are focused on technical refinements aimed at clarifying definitions. However, as differences remain unresolved, the timing of a public release has become uncertain. Committee rules require that legislation be formally posted 48 hours before consideration. As a result, the third week of April is expected to be a key inflection point for the pace of the legislative process.