.png?width=1816&height=566&name=brandmark-design%20(83).png "Tech Channels - IT News, Resources & Insights")
US Secretary of the Treasury Scott Bessent urged Congress to pass the CLARITY Act, arguing that the current regulatory framework is unclear and that uncertainty continues to push development to jurisdictions with clearer rules.
Who regulates what in digital assets has been a hot topic in the US over the last year, with the latest revelations highlighting a renewed sense of urgency. To be clear, however, Bessent’s pitch is not just intended for crypto enthusiasts—the argument is that the US risks letting innovation and investment migrate to places where registration pathways and standards are more predictable. In other words, crypto fintechs are primarily optimizing for legal clarity rather than patriotic branding.
The US Digital Asset Market Clarity Act was introduced on May 29, 2025, with a view to being passed this spring. Current obstacles suggest that it might now be delayed until 2030 at the earliest. However, the CLARITY Act has not stalled solely because of abstract jurisdiction lines, but rather due to disputes between the traditional banking sector and crypto firms—specifically whether the legislation should prohibit interest or rewards paid on stablecoins. The dispute is deeply tied to fears that yield-bearing stablecoins could lead to deposit flight. On the other hand, White House economists have assessed that the development would not meaningfully impact community banks, resulting only in a marginal boost to lending of 0.02%.
The current scenario is such that neither banks nor crypto firms are broadly satisfied with the evolving compromise language, suggesting that, if Congress fails to seek a solution that the market agrees on, the default would instead be to stick with the stablecoin regulations already on the books. However, this also means that the general prohibition on stablecoin issuers offering yield will remain—which would be a win for incumbent banks and a loss for the crypto sector.
The continuing push for the CLARITY Act, with its renewed sense of urgency, does nonetheless reflect a broader market shift where the crypto industry, banks, and policymakers alike now treat stablecoins more like a settlement infrastructure that could be embedded in mainstream apps. For fintechs based in the US, there are two key trends to look out for. Firstly, the shrinking legislative window suggests that progress must happen soon, otherwise it risks being crowded out by electoral politics.
Secondly, the whole conversation about yield has become a proxy battle for what stablecoins are allowed to be: either bank-adjacent deposit substitutes or strictly payments instruments without balance-based returns. That is exactly the line that both banking lobbies and crypto industry experts want to define in the legislation as soon as possible, rather than leaving it to the uncertainty of future enforcement.
