U.S. Senate negotiations over the CLARITY Act are entering a critical phase, with stablecoin yield provisions, DeFi (decentralized finance) regulations, and the Blockchain Regulatory Certainty Act emerging as core sticking points. According to journalist Eleanor Terrett, bipartisan lawmakers and industry representatives are racing to resolve disputes before the August recess to secure a full Senate floor vote.
Stablecoin Yield: On Hold but Not Off the Table
Despite a temporary shift in Capitol Hill focus, the stablecoin yield provision remains "very much in play," a banking source told Terrett. State bankers' associations have coordinated outreach with Senate offices, signaling that the issue could resurface when the bill reaches the floor. Lawmakers not on relevant committees are still being briefed, making yield discussions a potential flashpoint once voting begins.
Blockchain Regulatory Certainty Act Divides Law Enforcement
Acting Attorney General Todd Blanche met with law enforcement groups Friday to address the Blockchain Regulatory Certainty Act, one of the most disputed parts of the legislation. The provision would exempt non-custodial software developers from liability for third-party misuse of their code, except when they knowingly facilitate illegal activity. However, several Democratic senators and some law enforcement officials have voiced concerns about potential loopholes. Terrett noted that resolving these disagreements is essential to securing broader bipartisan support.
Lobbying Groups Mobilize as Legislative Window Shrinks
Outside Congress, crypto advocacy groups are stepping up engagement. On Wednesday, Stand With Crypto flew in advocates from more than a dozen states, meeting with 18 Senate offices to urge action on the Clarity Act. The Digital Chamber plans a similar lobbying event on Tuesday, with CEO Cody Carbone warning that the legislative calendar is contracting fast. Rep. Dusty Johnson, chairman of the House Agriculture Committee's Digital Assets Subcommittee, stressed: "We need to finish before August. Relying on a later session would be tough."
A bipartisan group of senators from the Banking and Agriculture Committees met Friday to address unresolved matters, including DeFi definitions and enforcement authority. Meanwhile, negotiations on an ethics agreement for the CLARITY Act continue, aiming to ensure a clean path to a floor vote.