New delay to the CLARITY Act: the text on stablecoin returns will not be released this week

The CLARITY Act faces a new legislative delay after a lack of consensus on the text that regulates stablecoin returns and promises to bring clarity to the entire crypto industry in the United States.

The advancement of the CLARITY Act, the legislative framework designed to provide legal certainty to crypto assets in the United States, has encountered a new obstacle in the Congress calendar. 

As of the date of this publication, sources close to the Senate Banking Committee have confirmed that the final text on regulatory clarity for digital assets will not be presented this week, as initially expected. 

According to sources consulted by Eleanor Terrett, presenter of Crypto in America And one of the people who has most closely followed this development says the new delay is due to the ongoing lack of technical consensus Regarding how to differentiate activity rewards from traditional bank interest on stablecoins, as this publication has reported, this distinction, which will determine the business model of major digital asset issuers and their interaction with the regulated financial system, has been the main obstacle to the bill's progress.

The regulatory dilemma that divides banks and crypto companies continues.

The sticking point that has stalled the debate on the CLARITY Act centers on the regulatory language that defines what constitutes "permitted performance." The most recent version of the draft bill proposed a strict prohibition on "passive yield" —interest generated simply by holding stable currencies—, allowing only incentives linked to active use on the network or to transfers. However, this distinction generated intense debate among banking lobby groups and companies in the Web3 sector.

While banking institutions advocate for regulation that would prevent stablecoins from competing directly with bank deposits without meeting FDIC capital requirements, the crypto industry argues that overly restrictive language could stifle innovation in payment protocols. The inability to reach an agreement before the current Easter break has prevented the text of the law from being published, leaving the operating rules that will govern the market in suspense once again. 

Cryptocurrency on hold as Congress delays the Clarity Act

With Congress entering a pro forma session, formal debate on the CLARITY Act has shifted to the second half of AprilAccording to what Commented According to Terrett, this new timeline places the potential vote in the Senate Banking Committee, led by Senator Tim Scott, for the last two weeks of the month. 

Terrett also pointed out that this delay is not just a matter of drafting, but of political strategy. Apparently, lawmakers are trying to prevent the bill from reaching the floor with significant objections from key industry players, such as Coinbase and Stripe, who have already expressed reservations about the current draft, published by Senator Thom Tillis, with the support of Senator Angela Alsobrooks and the White House.

Consequently, this further delay creates a period of uncertainty for companies involved with digital assets. While the legal framework is being defined, stablecoin issuers are operating cautiously and remain in a holding pattern that limits the launch of new products or the expansion of services. Without clear guidance, every decision becomes a risk calculation within a rapidly evolving regulatory environment. 

This delay ultimately reflects how complex it is to adapt the rules of the traditional banking system to a technological ecosystem that is advancing much faster than legislation.

Institutional legitimacy versus technical precision

Although the approval of a comprehensive regulatory framework for the crypto asset sector, such as that proposed by the CLARITY Act, has faced delays, legislative efforts remain on track towards a solid foundation for blockchain technology. 

To date, legislators and agencies like the SEC are collaborating on a clear classification that would allow stablecoins to operate as fast and reliable means of payment, all without jeopardizing the stability of traditional currency. Some experts interpret the pause in the rules on yields as a deliberate choice by Congress to prioritize precise technical details rather than rushing into a solution, in order to close any loopholes that could open the door to potential abuses later on.

However, resolving this conflict over stablecoin performance will be crucial for the architecture of Web3 in the coming years. If the CLARITY Act manages to harmonize the security requirements of the traditional financial sector with the flexibility of digital assets, a decisive step toward mass adoption will have been taken. Nevertheless, until the bill is published, the market remains attentive to the behind-the-scenes negotiations that will determine whether stablecoins will be treated as mere payment instruments or as a new generation of productive capital.