The eagerly anticipated crypto market structure bill, also known as the CLARITY Act, faces further delays and significant hurdles as lawmakers contend with differing industry stances and a packed legislative agenda. What was once seen as a clear path to regulatory clarity for the digital asset space is now navigating complex political waters, with a core issue — stablecoin yield — at the heart of the debate.
Stalled Progress and Core Disagreements
The bill's trajectory has hit a snag, with its advancement potentially pushed back to late February or March. This delay is largely attributed to the Senate Banking panel's decision to temporarily pivot its focus towards President Trump’s affordable housing agenda. Crucially, a major point of contention has emerged regarding stablecoin yield. The crypto industry, led by key players like Coinbase, has expressed strong opposition to provisions prohibiting stablecoin rewards, arguing that "no bill is better than a bad bill." Conversely, the traditional banking sector staunchly opposes stablecoin rewards, citing potential risks to community banks and rural economies. This deadlock has created a complex environment, making bipartisan agreement difficult to achieve.
White House Push for Compromise
Amidst the legislative gridlock, White House officials are actively calling for compromise to salvage the bill. David Sacks, the White House AI and Crypto Czar, remains optimistic, asserting that the bill is not "dead" and advocating for a solution to get the market structure legislation onto the president's desk. Echoing this sentiment, Trump’s crypto advisor Patrick Witt has urged crypto industry hardliners to avoid letting "perfect be the enemy of a good bill," emphasizing the bill's "inevitable" passage. These statements highlight a concerted effort from the administration to bridge the divide and find common ground on critical issues, particularly the contentious stablecoin yield.
Bipartisan Hurdles in the Senate
Adding to the uncertainty, the Republican-led Senate Agriculture panel, responsible for the commodity and CFTC aspects of the crypto legislation, is reportedly prepared to move forward without Democratic input. After failing to secure bipartisan support despite a two-week delay for negotiations, Chair John Boozman (R-AK) has vowed to advance the bill. While this demonstrates a determination to progress, the lack of Democratic backing presents a significant challenge. Without bipartisan consensus, securing the necessary 60 "YES" votes to move the bill out of the committee will be exceedingly difficult, casting a shadow over the CLARITY Act's immediate future.
