Senate's CLARITY Act Revival Sparks Hope for Crypto Firms

The U.S. Senate's stalled CLARITY Act has been a major hurdle for crypto firms Coinbase and Robinhood, but recent efforts to revise the bill could bring clearer regulations for digital assets.

Passed by the House of Representatives last July, the act aims to establish a federal framework for regulating cryptocurrencies. However, its progress in the Senate has been slow due to disagreements over issues like stablecoin yields and public disclosures of crypto holdings.

Sens. Thom Tillis and Ruben Gallego are leading a bipartisan effort to revise the bill before the summer recess on August 8. If passed, the CLARITY Act would bring tailwinds for Coinbase and Robinhood, making it easier for them to launch new digital assets and attract more investors.

However, both companies want to ensure that the act allows investors to earn yields on their 'staked' tokens, which many banks oppose. A full ban on these features could affect Coinbase more than Robinhood, as the former generated nearly a fifth of its revenue last year from stablecoins.