US Senator Alsobrooks Urges Banks, Crypto Industry to Compromise on CLARITY Act

The CLARITY Act seeks to divide oversight of digital assets between the US Securities and Exchange Commission and the Commodity Futures Trading Commission. The House passed it by 294–134 on July 17, 2025. Senate consideration has stalled over stablecoin yield: the American Bankers Association fears deposit outflows from community banks, while Coinbase opposes restrictions on rewards. The dispute has become pivotal to the market structure bill’s prospects.

After roughly nine months of negotiations, the two senators proposed on May 4 banning passive yield that functions like a bank deposit while preserving rewards tied to activities such as transactions. The White House Council of Economic Advisers estimated that a total interest ban would increase bank lending by only $2.1 billion. The Senate Banking Committee advanced the bill by 15–9 on May 14, but Alsobrooks said on June 5 that she would not support a floor vote until agreements were reached on ethics and illicit-finance provisions.