Senate Vote Looms for CLARITY Act Amid Stablecoin Reward Debate

The CLARITY Act, a bill aimed at regulating the US crypto market, is facing opposition from banks regarding stablecoin rewards. The Senate is set to vote on the bill in September, with market participants closely watching the development.

Banks are pushing back against crypto platforms offering incentives for holding stablecoins, such as USDC and USDT. The current language in the bill restricts rewards that resemble interest on bank deposits, although it allows for certain activity-based incentives.

Market data suggests a slight decrease in the probability of the CLARITY Act being enacted this year, with the odds currently priced at 18.5% for the sub-market ending January 1, 2027.