senate

According to Crypto In America, the U.S. CLARITY Act has reached a key compromise on the yield mechanism for stablecoins, clearing an important obstacle for the Senate Banking Committee to advance its review.Under the latest proposal, crypto companies can offer rewards (such as cashback or membership benefits) based on user transaction behavior, but are prohibited from paying interest yields (APY) on idle stablecoin balances. This compromise means that stablecoins will be explicitly positioned as payment tools, rather than as bank-like deposits or high-yield savings products. The industry generally believes that this provision strikes a balance between the crypto industry and traditional banks, but is overall more favorable to the banking system.Industry organizations, including Coinbase, have renewed their support for the bill, believing that although the yield restrictions have tightened, there is still room to earn rewards based on actual usage scenarios. Some industry insiders have pointed out that this move limits the financial attributes of stablecoins.In terms of the regulatory process, Senate Banking Committee Chairman Tim Scott is expected to schedule a markup of the bill soon, possibly as early as mid-May after Congress reconvenes. Additionally, discussions around DeFi regulation (such as defining developer responsibilities) and ethical provisions are still ongoing and may become important variables affecting the bill's final passage. The market generally believes that the next two weeks will be a critical window for whether the CLARITY Act can be implemented.

Galaxy Research Director Alex Thorn posted on the X platform that the CLARITY Act currently has a higher urgency, one reason being the intense competition for control of the U.S. Senate. If the Democrats regain control of the Senate, former Senator Sherrod Brown may reclaim the chairmanship of the Senate Banking Committee; however, if he fails to win the Ohio Senate election but the Democrats still secure control of the Senate, the committee may be led by Elizabeth Warren.The potential personnel changes mentioned above could significantly impact the regulatory direction of the cryptocurrency industry, thereby increasing the real urgency for advancing the CLARITY Act. Note: Elizabeth Warren is not friendly towards the cryptocurrency industry; she has urged the U.S. Treasury to implement strict accompanying rules for the GENIUS Act and has explicitly issued guidance prohibiting the use of federal resources such as the foreign exchange stabilization fund or the Federal Reserve's emergency lending tools to backstop stablecoins and the cryptocurrency industry.

Coinbase stated that a key disagreement regarding the yield terms for stablecoin holdings has been resolved with traditional banks, clearing the way for the U.S. Senate to advance the cryptocurrency market structure bill.Previously, banks had lobbied to restrict or prohibit exchanges from providing yields to stablecoin holders, mainly concerned about funds flowing out of the banking deposit system. Coinbase's Chief Policy Officer Faryar Shirzad indicated that the final plan, while adding some restrictions, still preserves the space for users to earn rewards through crypto platforms and networks based on actual use cases. This progress is expected to push the "Clarity Act" into the voting process in the Senate Banking Committee, further clarifying the division of responsibilities between the SEC and CFTC in the regulation of crypto assets.

According to Jinshi reports, the U.S. Senate Banking Committee voted to submit Waller's nomination for Federal Reserve Chairman to the full Senate.

The crypto lobbying organization Blockchain Association, along with CCI and more than 120 industry institutions including Coinbase, Ripple, Kraken, and Circle, jointly sent a letter to the U.S. Senate Banking Committee urging the acceleration of the review process for the CLARITY Act.Industry representatives stated that the U.S. needs to establish a unified regulatory framework for the digital asset market, clarify regulatory responsibilities, and strengthen investor protection. Relying solely on law enforcement and regulation cannot create a long-term stable environment. Institutions warned that prolonged policy ambiguity will lead to the outflow of capital, talent, and technology, weakening the strategic advantage of the U.S., while also calling for the development of appropriate federal unified regulatory rules for stablecoins, tokenized assets, and decentralized technologies.

According to CoinDesk, more than 100 U.S. cryptocurrency companies and industry organizations have written to the Senate Banking Committee, urging the advancement of the Clarity Act for the establishment of a federal regulatory framework for the digital asset market. The signatories include Coinbase, Ripple, Kraken, Andreessen Horowitz, Paradigm, Consensys, and others.Their core demands include clarifying the regulatory division between the SEC and CFTC, protecting developers of non-custodial tools, simplifying information disclosure rules, and avoiding fragmented regulatory standards across states. The signatories stated that if the U.S. continues to lack a comprehensive cryptocurrency regulatory framework, investment, employment, and development activities may flow overseas.

According to The Block, Thom Tillis, a key negotiator for the U.S. Senate Banking Committee and a Republican senator from North Carolina, stated that the committee is unlikely to schedule a hearing to revise and vote on the cryptocurrency market structure bill within April.The main disagreement in the current legislation centers on how to handle rewards for stablecoins. The existing draft proposes to prohibit rewards for idle stablecoin accounts but allows earnings from trading activities; banking representatives are concerned that such earnings will attract deposits away from traditional banks, while cryptocurrency companies argue that limiting rewards will hinder innovation. Tillis suggested that the committee postpone the review until May.Previously, Senator Bernie Moreno warned that if the bill fails to pass before May, "digital asset legislation will not advance in the foreseeable future."

According to a report by CryptoSlate, the White House Economic Advisory Council recently released a research report indicating that banning the yield on stablecoins has very limited protective effects on bank loans, yet it significantly reduces consumers' ability to earn returns through digital cash. This conclusion directly challenges the core argument of the banking industry supporting the yield ban and provides new policy backing for the advancement of the CLARITY Act.Currently, Treasury Secretary Bessent and SEC Chair Atkins have both publicly expressed support for the bill, indicating a convergence of positions between the executive branch and regulatory agencies. However, the Senate Banking Committee has yet to announce a timeline for the bill's review, and political maneuvering remains the biggest variable.Analysts point out that if the committee can complete its review before the summer recess, the probability of the bill passing will significantly increase; otherwise, it will face the dual risks of election pressure and legislative delays.

According to the Senate Banking Committee's official website, next week (April 21) there is only one nomination hearing on the agenda, and there are no scheduled discussions/modifications for the anticipated digital assets or CLARITY Act.Additionally, Politico reports that Senator Thom Tillis will release the final draft this week, which is the last piece needed before the committee holds a markup meeting. The bill still needs to align with the Senate Agriculture Committee, pass the Senate's 60-vote threshold in a full vote (requiring Democratic support), and then coordinate with the House of Representatives.Some analysts point out that if a markup meeting is not scheduled between April 20 and 25, the midterm election politics could completely stifle the bill, as bipartisan cooperation would vanish entirely.

According to Politico, the cryptocurrency asset bill led by Senate Banking Committee Chairman Tim Scott is embroiled in controversy over the DeFi developer protection clause, making bipartisan consensus difficult to achieve.The controversial clause aims to exempt non-custodial software developers who do not control user funds from registering as money transmitters or complying with anti-money laundering requirements. Law enforcement agencies such as the National Sheriffs' Association and the National District Attorneys Association have sent letters to Congress warning that this clause would weaken the ability to combat financial crime; Senate Judiciary Committee Chairman Chuck Grassley has also expressed similar concerns.The cryptocurrency industry views this as the core of the bill, with DeFi Education Fund Executive Director Amanda Tuminelli explicitly stating that no modifications to the clause text will be accepted. Democratic Senators Catherine Cortez Masto and Mark Warner are pushing for amendments to the clause. If the two parties fail to reach a consensus, the bill may advance without Democratic support, affecting the bipartisan majority needed for a full Senate vote.

According to Jin Shi reports, a source told CNBC that the U.S. Senate Banking Committee will hold a hearing on April 16 to review the nomination of Kevin Warsh as Chairman of the Federal Reserve.Another criminal investigation surrounding the Federal Reserve is still ongoing, examining whether current Chairman Powell made false statements to Congress regarding the expensive renovations of the Federal Reserve's office building. Meanwhile, Warsh's nomination process is still moving forward, which could lead to a conflict between the two parallel processes pushed by the Trump administration.Banking Committee member Thom Tillis has already stated that he will not vote to confirm Warsh until the investigation is concluded, meaning Trump cannot advance both processes simultaneously. However, by continuing to push for the hearing, Trump is clearly still trying to achieve this goal. The Senate Banking Committee has not yet listed the hearing on the public agenda.

According to Cointelegraph, crypto journalist Eleanor Terrett revealed that the text of the stablecoin yield bill will not be released as scheduled this week, due to concerns that it would give opponents the opportunity to delay the bill before the Senate review.

According to Punchbowl, two sources familiar with the plans revealed that the Senate Banking Committee plans to hold a nomination hearing for Kevin Warsh to become the Chairman of the Federal Reserve as early as the week of April 13. The specific date is still uncertain and will depend on whether Warsh submits complete materials to the committee.

According to Bitcoin Laws disclosed on the X platform, the "Bitcoin Reserve Act" HB1695 in the Tennessee House of Representatives has been "put behind the budget," which means the bill has been "softly shelved" due to its later scheduling in the legislative agenda.The corresponding Senate bill (No. 2639) is still progressing.

According to Politico, Senate Republicans are considering adding bank deregulation provisions to the cryptocurrency market structure bill to help advance a stalled housing proposal.

According to CoinDesk, negotiations on the CLARITY Act, a U.S. cryptocurrency market structure bill, have been ongoing for several weeks and are currently in a state of "almost reached."Insiders say that the updated legislative text was submitted to the White House for review on Thursday, and Republican members of the Senate Banking Committee held a meeting that day to discuss how to bridge the final gaps. A long-standing dispute over stablecoin yields is nearing compromise, but lawmakers are still discussing what other concessions can be offered to community banks in exchange for their support, which may include provisions related to recent housing legislation. Democrats continue to demand a ban on government officials profiting from personal cryptocurrency interests (mainly targeting Trump) and require the appointment of a Democratic commissioner to fill a vacancy before the CFTC passes new regulations.Senator Lummis stated that the Coinbase CEO has been more flexible in recent negotiations. Meanwhile, the SEC released its first classification definition of crypto assets this week. The SEC chairman stated that only Congress can rewrite the law, but in the meantime, regulators are providing a responsible regulatory path that the market needs.

Members of the crypto advocacy organization Stand With Crypto have written to the U.S. Senate Banking Committee, urging the protection of decentralized finance development in the advancement of crypto legislation and the retention of provisions that allow trading platforms to offer stablecoin yields.The letter points out that a clear and fair regulatory framework should be established while avoiding the undermining of innovative financial technologies. The current legislative controversy mainly focuses on stablecoin yields and DeFi regulation, with the banking industry concerned that yield mechanisms will divert traditional deposits, while the crypto industry argues that restricting yields will stifle innovation. Additionally, the letter emphasizes the need to retain provisions related to blockchain regulatory certainty legislation, clarifying that developers who do not control user funds are not considered money transmitters. Relevant legislation is still being advanced in the Senate Banking Committee.

According to Jinshi Data, the U.S. Senate has not yet received the hearing-related documents for the Federal Reserve Chair nominee, Waller.

According to market news, the Australian Senate Economic Legislation Committee has released a report supporting the legislative proposal to include cryptocurrency platforms and custodial services in the country's financial services system.The bill will amend the Corporations Act and the ASIC Act to establish a licensing and compliance regime for businesses that hold or manage digital tokens on behalf of clients. Under the framework, digital asset platforms and tokenized custodial service operators will generally be required to hold an Australian Financial Services License, comply with asset protection standards, and meet disclosure requirements when accepting retail clients. The bill aims to fill regulatory gaps, ensuring that intermediaries holding clients' digital assets are governed by existing financial services laws rather than regulating the blockchain technology itself. If passed, it will provide a six-month transition period for providers that do not yet hold an AFSL.