Senate Freezes CLARITY Act Vote as Crypto Giants Clash Over Stablecoins, DeFi and Market Rules
Key Takeaways:Senate Hits Pause on CLARITY Act MarkupCrypto Industry Splits Over Stablecoins and DeFiWhat’s Inside the CLARITY ActStablecoin Yield Is the Pressure Point
The most explosive issue is stablecoin yield. The draft restricts activity-based payments with stablecoins, which only applies directly to exchanges that reward users for holding stablecoins on their platforms. Banking lobby groups have lobbied hard for these limits, warning of deposit flight and risks to shadow banking. Crypto firms push back that the restrictions could hobble legitimate products and hinder adoption. This clash is among the biggest reasons the discussions are dragging on. There’s the matter of DeFi lingo, as well. Critics worry the bill could push decentralized protocols that weren’t designed for this kind of compliance into these frames.About Author
