Short Description: The fate of US crypto regulation hangs in the balance as regulators stay neutral on the contentious stablecoin yield debate, a key roadblock in the advancing CLARITY Act.
Read Time: 3 minutes, 15 seconds
Main Article
The long-awaited U.S. crypto regulatory framework is inching forward, yet a critical debate over stablecoin yield remains a pivotal roadblock. The CLARITY Act, a major crypto market structure bill, recently advanced out of the Senate Agriculture Committee by a narrow 12–11 vote, setting the stage for a future Senate floor vote. This progress follows the bill’s passage in the House and comes ahead of a crucial White House meeting between banking and crypto industry executives. The core conflict? Deciding whether yields generated from stablecoin lending activities should be treated as securities, a division that has seen traditional financial institutions and crypto-native companies like Coinbase at odds, leading the latter to withdraw its support for the current legislation.
During a CNBC appearance, top regulators SEC Chair Paul Atkins and CFTC Chair Mike Selig notably refrained from taking sides in the politically charged debate. Atkins emphasized the SEC’s advisory role to congressional committees, stating they are focused on “helping them get across the finish line.” Selig pointed to the previously passed GENIUS Act, which he said placed stablecoin policy largely outside the CFTC’s immediate remit, leaving the agency focused on “securities, tokens and tokenized securities.” Both chairs portrayed their agencies as ready to enforce whatever framework lawmakers ultimately decide, with Selig noting they are “ready, willing, and able to work with whatever they come up with.”
This regulatory neutrality underscores that the ball is firmly in Congress’s court. The upcoming White House-hosted meeting aims to break the deadlock on this and other unresolved issues between the Senate Banking and Agriculture Committees. The outcome will determine how digital asset markets are structured and supervised, defining the operational boundaries for the SEC and CFTC. As the CLARITY Act moves through the amendment process, the treatment of stablecoin yield stands as the defining issue that could make or break comprehensive U.S. crypto regulation.
Short Summary
The CLARITY Act advances amid a stalemate on stablecoin yield classification. While SEC and CFTC chairs remain neutral, Congress must resolve this key issue between traditional finance and crypto firms. The upcoming White House meeting is pivotal for shaping the final crypto market structure bill and determining the future regulatory landscape for digital assets in the United States.
