New CLARITY Act Stablecoin Rules Set For Crypto Review Today, Banks Next: Report

• According to a Politico report, crypto companies are expected to review the proposal first, followed by banks.
• Crypto companies are expected to review the proposal first, followed by banks, though the timeline may shift.
• The draft has been tightly controlled, with stakeholders previously allowed to review it only on-site without retaining copies.

A select group of banking and cryptocurrency industry executives is reportedly scheduled to review revised legislative language governing stablecoin yields in closed-door sessions over the next two days, so that the CLARITY Act may advance in the Senate by the end of April.

According to a Politico report, the latest round of reviews is expected to follow a staggered schedule. Crypto firms are slated to examine the revised language first, potentially as early as Thursday, followed by banks on Friday, according to people familiar with the matter. The timing, however, remains subject to change.

Access to the draft has remained tightly controlled. Last week, stakeholders visiting Capitol Hill were permitted to review the text on site but were not allowed to retain copies, underscoring the sensitivity of the negotiations around the CLARITY Act.

Stablecoin Yield Debate Intensifies

The proposal drafted by Thom Tillis and Angela Alsobrooks is part of the government’s effort to resolve the ongoing dispute between traditional financial institutions and crypto firms over whether stablecoins should be allowed to offer yield.

Banks have argued that allowing yield-bearing stablecoins could create competitive and regulatory imbalances, while crypto firms like Coinbase (COIN) contend that such features are essential for innovation and user adoption, leading to a stalemate over the CLARITY Act.

Coinbase and Circle (CRCL) have a 50-50 revenue-sharing agreement on USDC (USDC), but Circle is the official issuer of the stablecoin. COIN’s stock was down 1.6% in midday trade on Thursday, while CRCL’s stock fell nearly 4%. Retail sentiment around both the crypto-linked equities on Stocktwits remained in ‘bearish’ territory over the past day. 

Lawmakers Seek Final Consensus

The revised draft follows a series of staff-level meetings between lawmakers and representatives from both industries, where feedback was gathered on an earlier version of the agreement.

The report said some participants in the process expect the updated language to serve as a final offer from lawmakers. However, it remains unclear whether it will satisfy both sides or lead to further revisions.

The negotiations come at a time when the digital asset market is said to be going through a “crypto winter.” The overall cryptocurrency market has shed nearly $2 trillion since October, and Bitcoin (BTC) has been trading range-bound between $65,000 and $70,000 – more than 45% below its record high of over $126,000 seen in October. 

BTC’s price fell 2.3% in the last 24 hours to around $66,900. On Stocktwits, retail sentiment around the apex cryptocurrency trended in ‘bearish’ territory over the past day, while chatter rose to ‘normal’ from ‘low’ levels.

Read also: Bitcoin Falls Below $67,000 After Oil Spikes, Trump's Iran Warning Rattles Risk Assets

For updates and corrections, email newsroom[at]stocktwits[dot]com.