Senate Crypto Bill Faces Final Hurdles Over Stablecoin Yield and Ethics Rules

The Digital Asset Market Clarity Act cannot advance to a final Senate vote until it passes a markup hearing in the Senate Banking Committee. The process was delayed by bank lobbyists who argued that allowing stablecoin holders to receive a return resembling bank interest would put the bank deposit base in peril.

White House crypto adviser Patrick Witt says a compromise on stablecoin yield has been reached among key senators and is expected to be durable. With the yield issue resolved, negotiations have pivoted to other outstanding issues, including illicit financial protections in the decentralized finance (DeFi) space and a Democratic request to bar senior government officials, including President Donald Trump, from profiting from the crypto sector. Witt says the negotiations have made considerable progress in the background and are close to closing out these remaining hangups.