Summary
- Democratic senators have submitted an amendment to the CLARITY Act that would tighten restrictions on stablecoin interest payments.
- The key point of the amendment is to reflect the banking industry's demands for tighter limits on stablecoin yield payments.
- Banks argue that stablecoin reward programs threaten the traditional deposit system, while the crypto industry says excessive restrictions would hinder market innovation.
Forecast Trend Report by Period
Democratic senators have filed an amendment to the CLARITY Act that would tighten limits on stablecoin interest payments.
Punchbowl News reporter Brendan Pedersen reported on May 12 that Democratic Senators Jack Reed and Tina Smith submitted the amendment ahead of a May 14 markup of the CLARITY Act, a digital-asset market structure bill.
The amendment is chiefly aimed at reflecting the banking industry's demands for tighter restrictions on stablecoin yield payments.
Pedersen said the proposal would effectively force senators to choose between the crypto industry and traditional banks. That could make the vote especially difficult for Republicans aligned with the banking sector, he wrote.
U.S. banks argue that stablecoin reward programs could threaten the traditional deposit system and should face tighter regulation. The crypto industry, by contrast, says excessive limits could hamper market innovation.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
