The Clarity Act, one of the most important legislative bills regarding cryptocurrency regulation in the US, is nearing its conclusion.
At this point, Clarity, also known as the Transparency Act, is scheduled to be discussed and voted on by the Senate Banking Committee on May 14.
There has been a new development regarding the CLARITY law, which the cryptocurrency sector has been eagerly awaiting.
Crypto in America host Eleanor Terrett X announced on her social media account that the US Senate Banking Committee has released a new 309-page draft of the CLARITY Act, which has been in preparation since January.
Committee members must submit their proposed amendments by the end of business on May 13th, before the meeting scheduled for May 14th.
The draft largely reflects a version previously shared with the industry, but retains a controversial provision regarding stablecoin yield and interest structure. It also includes legal protections for decentralized finance (DeFi) developers, reflecting a significant industry demand.
However, the latest draft bill does not include a provision restricting conflicts of interest related to cryptocurrency for public officials. Democrats say they will struggle to support the bill without such a provision, while the White House opposes rules that target specific individuals.
The Banking Committee had initially scheduled a meeting in January, but canceled it at the last minute after major cryptocurrency exchange Coinbase withdrew its support due to concerns, including how stablecoin rewards were handled. This issue was resolved earlier this month when key Democratic negotiators, Senators Angela Alsobrooks (Maryland) and Thom Tillis (California), introduced a clause preventing certain firms from paying any interest simply for holding stablecoins, or any payment that is “economically or functionally equivalent to paying interest or yield on an interest-bearing bank deposit.”
In conclusion, if the CLARITY bill passes the committee, it will need to reconcile with the version released by the Senate Agriculture Committee before a vote in the general assembly. At least 60 votes will be required for final approval, making it essential for some Democrats to support it.
The White House is aiming for the bill to be approved by early July. However, some lawmakers suggest that discussions could continue until early August.
*This is not investment advice.