Crypto Clarity Act nears Senate hearing as stablecoin yield and DeFi deals tighten

Lawmakers are moving toward further progress on the Digital Asset Market Clarity Act, commonly referred to as the Crypto Clarity Act, after weeks of near-completion talks. Republicans on the Senate Banking Committee met to close remaining gaps, while updated legislative text was reportedly prepared for delivery to the White House. The biggest sticking point has been stablecoin yield treatment. Sources say the debate—centering on how stablecoin rewards relate to “bank-line” language about savings and interest—is close to a compromise. Senators are also exploring additional, unrelated concessions to win support from banking-focused stakeholders, potentially including provisions tied to recent housing legislation. Other unresolved issues could still delay a Senate vote. Democrats in the talks want rules to reduce the risk of senior officials profiting from personal crypto holdings, particularly targeting former and current political conflicts, and they want CFTC leadership—before new crypto rules are adopted—to include Democrats for the party’s vacant seats. Separately, the U.S. Securities and Exchange Commission has advanced crypto policy execution. The SEC spent the week discussing a first-ever taxonomy defining U.S. crypto asset categories. SEC Chair Paul Atkins and Republican commissioners said they want Congress to pass a law that would back the regulatory approach, while the agency continues implementing policy changes. For traders, the Crypto Clarity Act momentum is primarily about reducing policy uncertainty: stablecoin yield and DeFi framework decisions can shift incentives for issuer behavior, exchange demand, and onchain yield products. Timing remains the key risk factor until committee and Senate hurdles are cleared.