The US Senate Banking Committee has scheduled a working session on the “Clarity Act” for May 14. The discussion set for 10:30 AM aims to resolve the long-standing conflict between the cryptocurrency industry and the traditional financial sector.
The legislation establishes clear jurisdictional boundaries between regulators by defining the status of tokens as securities or commodities. For market participants, the passage of this bill is critical, as the lack of a legal framework in the United States is hindering the development of the institutional sector.
Compromise on stablecoins
A key provision in the agreement between Senators Thom Tillis and Angela Alsobrooks is the prohibition of interest on passive balances of stablecoins. This decision is driven by demands from the banking lobby, as financial institutions are concerned about competition between digital assets and traditional deposits. However, rewards for the active use of tokens (payment transactions) will remain legal.
Banking associations have already launched an aggressive campaign to persuade Republicans, arguing that any “interest loopholes” in the Clarity Act could result in massive liquidity withdrawals from the banking system and undermine financial stability.
Political prospects
The crypto community is pushing for the law to be finalized before the November midterm elections. The House of Representatives approved its version of the bill last summer, but the Senate must pass it by the end of 2026 for it to reach Donald Trump’s desk for approval.
However, hurdles remain due to objections from several Democrats, who are calling for stricter anti-money laundering regulations and limitations on officials affiliated with crypto projects. Nonetheless, Trump’s status as the “crypto president” makes his signing of the law highly likely if it clears the upper chamber of Congress.
