Crypto Clarity Act Picks Up Endorsements, Heads for US Floor Vote
A revised US crypto market structure bill has secured backing from law enforcement and major industry groups, advancing a framework that will dictate how exchanges and banks compete on stablecoin yields.
The latest draft of the Clarity Act has garnered endorsements from the National Fraternal Order of Police and three top crypto trade groups, setting the stage for a likely floor vote in the US Senate. The legislation aims to establish the first comprehensive federal consumer protection framework for digital asset markets. Its progress matters significantly to traditional banks and crypto exchanges currently locked in a dispute over stablecoin products.
At the center of the bill's previous deadlock was a fundamental conflict over stablecoin yields. US banking chiefs have lobbied to ban crypto platforms from paying yield on these tokens, arguing that attractive exchange products would drain their retail deposit base. America’s largest crypto exchange, Coinbase, withdrew its support for the bill in January over this specific banking provision.
Lawmakers have spent this week circulating a new draft designed to break the impasse. To win over Democratic skeptics, the revised text explicitly bans government officials and their families from issuing or promoting cryptocurrencies. This provision directly targets criticism from Senator Elizabeth Warren, who warned on Wednesday that the legislation would allow President Donald Trump to profit from crypto ventures while aiding criminals.
The Fraternal Order of Police cited new safeguards addressing fraud at digital asset kiosks and broader anti-money laundering obligations in its Friday letter to Warren and Senator Timothy Eugene Scott. "The latest version of the 'Clarity Act' includes several provisions that improve the ability of State and local law enforcement to protect consumers, investigate financial crimes, and coordinate with their Federal partners," the organization wrote.
Major advocacy groups, including the Crypto Council for Innovation, Blockchain Association, and the Digital Chamber, also backed the revised bill on Friday. They argued that passing the legislation is necessary to establish the "first comprehensive federal consumer protection framework for digital asset markets." For market participants, the bill's final language on stablecoin yields will dictate the competitive landscape between legacy financial institutions and digital asset platforms.
