CLARITY Act Still Pending Key Fixes – Could Be Resolved In 2 Weeks, Reportedly Says Senate Banking Chair Tim Scott

• Tim Scott told Fox News the CLARITY Act timeline remains uncertain as key issues are still being negotiated.
• Stablecoin rewards and DeFi provisions are nearing resolution, with progress expected within weeks.
• Scott dismissed concerns of deposit flight to stablecoins, citing rising savings levels.

Senator Tim Scott reportedly said on Tuesday that he is still not sure when the CLARITY Act will be passed, even though talks are ongoing over key parts of the bill.

Scott said on Fox News’ Mornings With Maria that things are moving forward, but he stressed that some important problems still need to be resolved before the CLARITY Act’s bill can advance to final markup. He said, "I won't be as clear on that as I was on Kevin Warsh because there are three big problems that need to be fixed." 

Key Issues Remain Before Clarity Act Reaches Final Markup

Scott, who is the Chair of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, stated that three key issues are being discussed right now, starting with the stablecoin "rewards issue," which he thinks will be resolved soon. "We'll have that fixed in the next two weeks,” he said. 

Discussing the CLARITY Act further, he also said the decentralized finance (DeFi) part is almost done, adding that it is "almost as close as the rewards piece." He also said there was no evidence of deposits leaving banks for stablecoins and claimed that savings have actually increased since last year, citing the new White House report studying stablecoin yields.

Scott explained that the last thing to do is ensure the Republican Party is politically aligned. "We need to make sure that every single Republican is on the same page at the same time," he said, adding that this could take "another couple of weeks." 

Scott was hopeful about the bigger picture, even though he acknowledged the challenges. He said, "I'm hopeful that by the time summer comes, we'll be done with the CLARITY Act and able to move on to other important issues." 

The comments come as lawmakers continue to work out the details of the CLARITY Act, an important law that will help clarify the rules for digital assets in the United States. 

Both USAT’s price and USDC’s price were trading at $0.99. On Stocktwits, retail sentiment around USAT remained in ‘extremely bullish’ territory, while retail sentiment around  USDC dropped to ‘neutral' from ‘bullish’ zone. However, chatter around both the stablecoins stayed at ‘high’ levels over the past day.

Read also: Tether Drops ‘People’s Wallet’ To Put Crypto Control Back In Users’ Hands

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