Bipartisan Stablecoin Deal Could Reignite CLARITY Act, Clearing Path for US Crypto Rules
Lawmakers and industry insiders report renewed bipartisan talks that could revive the stalled Crypto-Asset Market Structure and Investor Protection Act (CLARITY Act) if negotiators reach consensus on stablecoin interest payments. The CLARITY Act aims to clarify SEC vs. CFTC jurisdiction, set digital asset classification standards, require exchange registration, and impose consumer protections and stablecoin oversight. Stablecoin interest — whether issuers can pay holders and how that affects securities classification — remains the main impediment. Proposed compromises include tiered interest frameworks, exemption thresholds, transparency rules, and reserve standards for interest-bearing stablecoins. Major market participants, including exchanges and tokenization firms, are engaging with Senate Banking Committee staff and trade groups to shape language. Observers say clearer rules would reduce regulatory uncertainty, boost tokenization and institutional adoption, and strengthen market infrastructure; however, political timing (including election-year dynamics) could delay progress. Traders should watch developments on stablecoin interest rules and jurisdictional boundaries between SEC and CFTC, as outcomes will affect exchange compliance costs, stablecoin issuance models, on‑ramp liquidity, and short-term volatility tied to regulatory risk.
Bullish
A bipartisan move toward resolving the stablecoin interest issue increases the probability of meaningful federal regulation. Clear, tailored rules typically reduce regulatory uncertainty — a primary source of selling pressure and constrained institutional participation. If the CLARITY Act (or an amended compromise) advances, expect: 1) improved institutional confidence and onboarding, supporting longer-term inflows into spot BTC/ETH and crypto-native assets; 2) reduced fragmentation across platforms as exchange registration and jurisdictional clarity lower operational risk; and 3) growth in tokenization markets that can broaden liquidity and long-term demand. Short term, markets may see volatility as traders price legislative outcomes and potential transitional costs for issuers/exchanges, especially for interest-bearing stablecoins. Historical parallels: passage of clear frameworks (for example, MiCA in the EU) tended to be net-positive for market structure and institutional engagement, while regulatory uncertainty around SEC enforcement actions previously pressured prices. Overall, the net impact is cautiously bullish — regulatory clarity usually fosters capital inflows and market maturation, though timing and specific provisions will determine magnitude.