Key Insights:
- Policymakers expect the CLARITY Act to get White House approval before July 4.
- U.S. Senator Bernie Moreno credited President Trump for the progress in crypto regulation.
- However, the bill is facing another roadblock as banks continue to debate over the stablecoin yield provisions.
The CLARITY Act momentum is growing despite the opposition from large banks. Lawmakers are hopeful that the US crypto bill could be signed into law by President Donald Trump before Independence Day.
U.S. Senator Expects CLARITY Act Passage Before July 4
The new remarks follow Senate efforts to get closer to a resolution on stablecoin yield provisions. In a video that the Solana team shared on X, Senator Bernie Moreno said lawmakers are making massive progress.
“Ultimately, because of President Trump, we’re making a lot of progress,” Moreno said. Senators are preparing to “mark up the CLARITY Act in the Senate” as early as next week.
He noted that they are in the process of “tidy packing” the jurisdictional issues from a variety of committees. Moreno also said the US crypto bill could enter the White House “before the end of June.” He went on to say that it could be signed into law before July 4.
While there has been no official date set for the Senate markup, the discussions are likely to grow later this month.
The CLARITY Act is in the “red zone,” according to Senate Banking Committee Chairman Tim Scott. It is an indication that negotiations are reaching a critical juncture.
This has also led to increased prediction market activity around the bill. Probability of the CLARITY Act passing surged above 60% for the first time in weeks as they hit 69%. The odds then stabilized around 60% on Polymarket.
Banks Express Discontentment With New Stablecoin Yield Draft
The positive mood comes after a compromise over stablecoin yield language in the CLARITY Act. However, not everyone in the banking sector is happy with the deal.
According to journalist Eleanor Terrett on X, “A divide is forming in bank land over the yield compromise.” Large consumer-facing banks continue to show worry. On the other hand, smaller banks with lesser retail clients seem more welcoming for the CLARITY Act’s new language.
Terrett noted that several banking industry trade groups felt the changes were still too limited and might enable crypto companies to evade yield caps on offerings. She quoted a source saying, “It’s not a true compromise because it doesn’t eliminate yield completely.”
Patrick Witt harshly criticized the response from banks. “Banks sure have a funny way of defining ‘compromise,’” Witt wrote on X.
How Politics Could Influence CLARITY Act’s Future
While some traditional finance firms have voiced concerns about speedy legislation, crypto industry players are advocating for swift action.
The CLARITY Act got bipartisan votes in the House. Now, Scott is eyeing to claim full Republican backing before negotiating further with Democrats.
Of course, political factors are also starting to be discussed. Galaxy Digital’s Alex Thorn cautioned how the legislation is timed could be meaningful as the Senate leadership is at stake.
In a post on X, Thorn added that one of the reasons why “CLARITY matters now” is because “the race for senate control is tight.” Former Sen. Sherrod Brown or Sen. Elizabeth Warren may lead the Senate Banking Committee if Democrats regain the majority.
In such a scenario, because of their anti-crypto stance, they could strike the CLARITY Act crypto bill off the priority list.
