Overview
- The Senate Banking Committee postponed its CLARITY Act markup with no new date, as the latest draft bans passive interest on payment stablecoins but permits limited activity-based rewards.
- Coinbase withdrew support, with CEO Brian Armstrong saying the draft would be worse than the status quo due to limits on stablecoin rewards, tokenized equities concerns, DeFi provisions, and a reduced CFTC role.
- Bank of America CEO Brian Moynihan warned that allowing interest-like stablecoin rewards could pull up to roughly $6 trillion from bank deposits, raising lending and financial stability concerns.
- The White House criticized Senate Democrats for acting in bad faith and, per reporting, is reconsidering support unless stakeholders reach a stablecoin-yield compromise.
- Crypto stocks and coin prices slipped after the delay, while firms including Ripple, a16z, Kraken, Coin Center, and others urged lawmakers to keep negotiating, with a stablecoin compromise viewed as the key to reviving the bill.