Senate Banking Chair's Hurdles Delay CLARITY Act Markup

Crypto market participants are becoming less optimistic about the CLARITY Act passing this year. Senate Banking Committee Chair Tim Scott suggests the markup for the bill may not hold this month, citing three key hurdles. The first is a clash between banks and the crypto industry over stablecoin rewards. Senator Thom Tillis hopes to release the stablecoin yield text this week to resolve the issue. The second is the second is the DeFi piece, specifically the BRCA provision. This provision protects developers of DeFi and DEX platforms from liability for illicit activity committed by protocol users. Law enforcement groups argue this protection would make it harder to crack down on financial crime. The third hurdle is the ensuring all Republicans on the Banking Committee are aligned. Scott stated these issues could take beyond April to resolve, preventing the bill's markup.