Clarity Act Faces Senate Vote on Sept. 15 Amid Stablecoin Dispute

The Clarity Act, which aims to provide a solid framework for digital assets in the U.S., has stalled in the Senate. The bill, which sets out what constitutes a security and a digital commodity, is scheduled for its first Senate vote on Sept. 15.

The legislation has cleared the House, but it still faces major hurdles. One sticking point is a disagreement between banks and the crypto industry on how stablecoin interest should work. Banks fear that if crypto platforms can pay stablecoin rewards, it will cut into their deposits.

Another issue is the ethics provisions, which opponents want to see enforced in order to prevent elected officials from using their positions to profit from cryptocurrency ventures. Some compromise has been reached, but the issue remains unresolved.