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Stablecoin Yields Under Question During Clarity Act Markup
Recent progress in the U.S. Senate Banking Committee has been partly slowed down due to the question of stablecoin yields, as Banks consider stricter restrictions.
The future of blockchain technology relies on the CLARITY ACT, which itself has issues with stablecoin yields (Alicia Razuri / Unsplash)
Stablecoin Rewards Debate: Clarity Act
Last week on Thursday, the U.S. Senate Banking Committee was scheduled to markup the Clarity Act to get through the most comprehensive crypto legislation bill proposal.
The week unfolded with talks of both the Democrats and Republicans heading to the vote with concerns on how the voting would progress. On the one side, there were issues to do with the way in which stablecoin yields would be further restricted to end-users.
The topic of stablecoin yields first came up in the run-up to the GENIUS Act signed last summer. Therein, it is written that issuers are not allowed to pay out interest on payment stablecoins. The BPI letter and banking lobby had also made efforts to omit any other version of stablecoin yields or rewards paid out by third-parties.
On Tuesday, the latest draft of the Clarity Act had dropped and it was understood that over 100 amendments were provided in the lead up to Thursday's markup.
Coinbase is still calling on the industry and Congress to unite on this and work through what is acceptable to both sides, which is no easy feat. However, stablecoins are just one issue that should have been closed in the GENIUS ACT. They were only brought in after-the-fact.
This bill should be entirely dedicated to the future of blockchain and crypto industry regulations: from DeFi innovation and developer safety, to the prospects of self-custody, "clarity" on digital asset securities and commodities, as well as principles for tokenization.
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