Several crypto stocks opened Monday’s trading session moving higher after the US Senate shared new compromise language in the U.S. Clarity Act. Indeed, the Senate appears to have resolved the issue of whether stablecoins can pay a yield similar to interest on a bank account. Stablecoin issuer Circle (CRCL) is up the most, surging over 15%. However, other crypto stocks like COIN and GMNI are also up as much as 6% on Monday.
The revised language paves the way for a Senate Banking Committee review and eventual detailed rules from the U.S. Treasury and the Commodity Futures Trading Commission (CFTC). Specifically, the update means that platforms like Coinbase would be barred from paying customers yield on their idle stablecoin balances. However, the new language still permits the payment of rewards for stablecoins that are used in bona fide transactions. It also allows for liquidity and market-making activities as well as posting collateral tied to a trade or loan.
Since the beginning of this year, the debate over stablecoin yield payments has stood as the biggest obstacle in passing a major crypto market structure bill known as the Clarity Act. However, it’s not the only matter left unresolved in the legislation. With this latest revised legislative language released, the next step is for the Senate Banking Committee to schedule a markup hearing for the bill in the coming days, and time is running short.
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The next step in the Clarity Act’s movement through Congress is for the Senate Banking Committee to formally debate and amend the legislation. The U.S. Treasury and the CFTC will have a year after the bill officially becomes law to write detailed rules around what cryptocurrency firms can and cannot do with yield-bearing products. Should the bill be approved and receive verbal support from crypto leaders, the stablecoin market and crypto stocks are expected to skyrocket.