Senate Committee Releases Updated Crypto Bill
The U.S. Senate Banking Committee released an updated version of the Clarity Act ahead of a key markup vote later this week. The legislation aims to establish federal rules for the crypto industry for the first time.
Tim Scott said the revised bill reflects bipartisan efforts to provide regulatory clarity, improve consumer protection, and combat illicit financial activity in the digital asset sector.
Stablecoin Rewards Language Added
The updated bill includes new language addressing stablecoin rewards. Lawmakers added provisions that would prevent certain companies from offering interest or yield simply for holding stablecoins.
The compromise language was introduced earlier this month by Angela Alsobrooks and Thom Tillis after concerns from crypto firms and banking groups.
Crypto exchange Coinbase previously raised objections over the treatment of stablecoin rewards, which led to delays in the bill’s progress.
Trump Crypto Conflict Concerns Remain Unresolved
The updated legislative text does not address growing concerns regarding potential crypto-related conflicts of interest involving Donald Trump and other federal officials.
Democratic lawmakers have pushed for ethics rules that would restrict elected officials from profiting from digital asset ventures. Critics argue the bill lacks safeguards despite reports that Trump-linked crypto businesses generated significant revenue.
Elizabeth Warren criticized the proposal, saying it could increase risks related to political corruption and financial oversight.
DeFi Protections Included in the Bill
The legislation also includes the Blockchain Regulatory Certainty Act (BRCA). The provision aims to clarify that non-custodial software developers and blockchain infrastructure providers should not be treated as money transmitters.
Supporters believe the measure would protect decentralized finance innovation in the United States. However, some law enforcement groups warned that the language could create challenges in tracking financial crimes involving crypto assets.
