On Monday morning, the U.S. Senate Banking Committee released the full text of the Digital Asset Market Clarity Act, 48 hours before its scheduled hearing on Thursday. The 309-page bill includes a section-by-section summary, indicating that legislative progress has entered the public discussion phase.
Stablecoin yield terms come into focus
The most contentious part of the bill is Section 404, which addresses stablecoin yields. The latest text prohibits stablecoin issuers and their associated digital asset service providers from paying yields on stablecoin balances that are equivalent to bank interest.
Activity-based rewards are still retained, including cashback on payments, trading incentives, and rewards tied to spending. No returns will be generated simply by holding stablecoins without any active activity. Coinbase CEO Brian Armstrong said that the terms are nearing a version acceptable to all parties.
- The SEC, CFTC, and the Treasury will jointly develop implementation rules within 12 months of the bill taking effect.
- Armstrong said Coinbase is advancing partnerships with at least five major global banks.
- Senators Tillis and Alsobrooks have regarded this compromise text as the final version.
Banks continue to apply pressure
The American Bankers Association, the Bank Policy Institute, and the Independent Community Bankers of America jointly sent a letter to bank executives over the weekend, urging Congress to intervene and block the passage of provisions related to stablecoins. The core concern of the banking industry is that yield-bearing stablecoins could draw away insured deposits, thereby impacting sources of funding for mortgages and lending.
However, there is not complete consensus within the banking industry. Reports indicate that large banks with retail operations are more opposed to the wording, while banks without retail operations tend to be more open, and some community banks have expressed tacit support.
DeFi proceeds alongside ethical controversies
The bill retains provisions from the Blockchain Regulatory Certainty Act, protecting software developers who do not control customer funds from being classified as money transmitters. The DeFi Education Fund stated that the key provisions most important to developers and infrastructure providers remain in the bill.
However, the biggest outstanding issue in the bill remains the ethics provisions. Senator Elizabeth Warren criticized the newly released text for failing to address conflicts of interest involving Trump and his family in the crypto sector. Democrats have also stated that the bill is unlikely to gain support without provisions limiting members of Congress and senior officials from profiting from the crypto industry.
Two more hurdles still need to be overcome.
Even if the bill passes the banking committee on Thursday, it must still be merged with the version from the Senate Agriculture Committee. A 60-vote supermajority is required for a full Senate vote, meaning continued Democratic support remains a practical hurdle. The White House aims to complete signing before July 4, positioning it as a milestone for the 250th anniversary of American independence.