Banks win on stablecoin yield, CLARITY Act delayed – ‘Still hopeful we get a bill’
Market uncertainty deepens as Senate Banking markup beckons.
Senate Agriculture Committee Chairman John Boozman (R-Arkansas) has delayed the markup of the CFTC side of crypto market structure legislation (CLARITY Act).
In a statement, Boozman said the committee markup has been pushed from the 15th of January to the last week of this month, citing the need for more engagement to garner “broad bipartisan support.”
“To finalize the remaining details and ensure the broad support this legislation requires, additional time is needed before moving to markup.”
Senate Banking draft prohibits stablecoin yield
However, the Senate Banking Committee, which will handle the SEC (Securities and Exchange Commission) side of the legislation, will proceed with the 15th January deadline for the markup.
At press time, the Banking Committee had released a tentative draft for markup.
Although the draft offered safe harbor for developers, the crypto industry appeared to have lost the stablecoin yield issue to banks. The draft bans stablecoin rewards on deposits via service providers.
The only stablecoin rewards permitted by the legislation will be “activity-based” rather than deposits, a proposal some crypto leaders had strongly opposed.
In fact, Jake Chervinsky, chief legal officer at crypto VC Variant Fund, said the yield issue was “one of the few things” that could blow up the market structure bill.
For his part, Galaxy CEO Mike Novogratz said there were,
“Lots of woods to chop, but still hopeful we get a bill.”
However, Nic Puckrin, digital asset analyst and co-founder of the Coin Bureau, told AMBCrypto,
“I wouldn’t be surprised to see further delays as committee members grapple with the implications of the proposed amendments. And any delays will weigh heavily on a digital asset market that has struggled with momentum for months.”
That said, the bill will enable the CFTC (Commodity Futures Trading Commission) to oversee commodities, derivatives, and the spot market.
On the other hand, the SEC will handle token classification, stablecoins, DeFi, and investor protection aspects of the bill.
After each side has finalized its respective markups, the bill should be merged before the Senate debate and floor vote. The House must also approve it before it can be advanced to the president.
Paul Atkins bullish on crypto bill outcome
Despite considerable panic from some crypto leaders over the outcome, the President Donald Trump administration officials appeared positive.
Patrick Witt, Executive Director, President’s Council of Advisors for Digital Assets, reiterated that the bill would pass.
“Don’t be a panican. Stay engaged, and trust the process. CLARITY is near.”
SEC Chair Paul Atkins also reinforced a bullish outlook and added,
“Passing bipartisan market structure legislation will help us future-proof against rogue regulators, ensuring that we achieve President Trump’s goal to make the U.S. the crypto capital of the world.”
Meanwhile, prediction site Polymarket projected an 80% chance of the bill’s passage in 2026. Bitwise CIO Matt Hougan said that BTC could reach a new record high if the bill passes.
However, he warned the “crypto winter” could be prolonged if the bill fails to advance.
Final Thoughts
- Senate Banking draft released for January 15 markup prohibits stablecoin rewards.
- Bitwise CIO predicted that the bill’s outcome could determine Bitcoin’s direction in 2026.
