Senate Grapples with Clarity Act as Crypto Regulation Hangs in Balance

The U.S. Senate is on the cusp of a crucial vote for the Clarity Act, a comprehensive digital-asset market structure bill that could redefine how cryptocurrencies are regulated in the United States.

The bill has undergone significant changes to address ethics concerns, with President Donald Trump accepting stricter restrictions around his own crypto interests and expanded enforcement powers for state attorneys general alongside federal authorities.

However, stablecoin rewards remain a contentious issue, with banking groups arguing that they could encourage customers to move money from bank accounts into stablecoins, potentially reducing funding available for mortgages, small-business loans, and other local lending.