TechFlow News, April 14: According to The Block, U.S. Republican Senator Thom Tillis stated he will publicly release a draft bill this week aimed at resolving the long-standing dispute between banks and crypto firms over stablecoin yield provisions in the Clarity for Payment Stablecoins Act (the “Clarity Act”). Tillis co-drafted the provisions with Democratic Senator Angela Alsobrooks. The draft has already undergone review by both banking and crypto industry stakeholders, though banks remain opposed. Tillis indicated he is open to further revisions of the text.
The stablecoin yield issue represents the central point of contention in the Clarity Act—banks fear that permitting crypto firms to pay interest on idle stablecoins would trigger massive deposit outflows, while crypto companies such as Coinbase argue that banning such interest payments would stifle innovation. Additionally, Tillis proposed hosting a “Crypto Summit” to bring all stakeholders to Capitol Hill for negotiations. The Clarity Act has not yet cleared the Senate Banking Committee and remains far from final enactment.
