Senate's CLARITY Act Compromise Draft Seeks Middle Ground on Stablecoins, DeFi
The Senate has released a revised draft of the Digital Asset Market Clarity (CLARITY) Act, aiming to bridge the disputes that have stalled comprehensive U.S. digital asset legislation.
The latest compromise draft pairs expanded regulatory certainty for the cryptocurrency industry with stronger consumer protection and anti-money laundering provisions, according to an analysis by Ashurst Perkins Coie.
Key aspects of the revised draft include restrictions on stablecoin rewards programs, expanded protections for decentralized finance (DeFi) participants, and a comprehensive framework for digital commodities markets.
The proposal would prohibit digital asset service providers from paying interest or yield merely for holding payment stablecoins, but allow activity-based rewards tied to payments, remittances, liquidity provision, staking, loyalty programs, or other transactional activity.
The Senate Majority Leader John Thune confirmed that no vote will occur until lawmakers return in September, and the legislation's consumer protection focus has been broadened with provisions designed to combat elder fraud, cryptocurrency scams, and cyber-enabled theft.