Crypto industry calls for lawmakers to act after breakthrough agreement

Like crypto companies coinbase They’re calling on Congress to advance a major market structure bill known as the CLARITY Act next week after senators unveiled compromise language aimed at ending a fight between banks and cryptocurrencies over when rewards can be made in stablecoins.

The proposal is from Sens. Thom Tillis, R-N.C, and Angela Alsobooks, D-Md. – will ban crypto companies from offering yield-like rewards for holding stablecoins, which banks have warned will lead to fewer deposits and less capital they can lend. However, rewards will be allowed if users spend or use stablecoins.

A regulated crypto bill is a top priority for the crypto industry, and the Trump White House is actively pushing for it. The fierce debate over stablecoins was seen as the main obstacle to the bill’s passage through the Senate Banking Committee, although other disagreements remain.

Crypto industry embraces text with Coinbase CEO Brian Armstrong airing on X The committee needs to “mark up,” which means a vote in the Senate Banking Committee.

Summer Mersinger, CEO of the Blockchain Association, said in a statement that the legislation “is a step in the right direction, and we urge the Committee to move forward without delay.”

The Banking Committee has not yet announced the first vote on the bill. Banking Committee Chairman Tim Scott, R.S.C., on Monday. said in an X post He said the panel was “closer to consensus and working toward a bipartisan increase in May.”

It’s unclear whether all 13 Republican members are prepared to vote yes; This is one of the reasons why the vote on the bill planned to be held in January was cancelled.

A group of banking groups led by the American Bankers Association and the Banking Policy Institute criticized the compromise legislative language and said they were concerned it would not ban yield and interest payments on stablecoins.

“Research shows that yield-generating stablecoins could reduce all consumer, small business and farm lending by a fifth or more, making it necessary for the ban to be open and transparent,” the groups said in a statement late Monday. he said.

If the banking industry’s concerns are enough to cause some Republicans to vote no, this month’s vote could be in jeopardy. But Tillis, an ally of the banking industry, told CNBC in a brief interview that he was satisfied and Banking Committee Chairman RS.C. He said he encouraged Tim Scott to schedule the committee vote.

If a vote does occur, it will likely be along partisan lines. While some Democrats want to work with Republicans to pass a bill, differences remain, including over ethics provisions.

Alsobrooks said he was pleased with the agreement on stablecoin rewards but said other areas had expressed concerns and needed “some more compromise and refinement” before he could support the bill.

Sen. Bernie Moreno, R-Ohio, said he hoped the bill would get bipartisan support in committee but did not expect it to.

“It will probably pass through Banking as a partisan bill and then we will address Democrats’ last-minute concerns,” he said.

He compared negotiating with Democrats to Charlie Brown trying to kick a football before Lucy pulled it away at the last minute.

“They’re always adding things they want, and I understand that. We’ve been extremely helpful,” he said. “But at some point you have to put down the pen.”