U.S. CLARITY Act Faces Critical Negotiations Amid Banking Lobby Efforts

The U.S. CLARITY Act enters a crucial negotiation phase this week, with its potential committee review in April or a delay until May hinging on recent developments. According to BlockBeats, the Senate Banking Committee will initially focus on the hearing for Federal Reserve Chair nominee Kevin Walsh. By Friday, the committee must decide whether to notify for the Act's review, aiming for a vote in the week of April 27. Banking groups, led by the North Carolina Bankers Association, are lobbying against the Act's stablecoin yield restriction clause, urging members to contact Senator Thom Tillis's office for amendments. Industry groups are also reaching out to other committee members. After over two months of negotiations, a compromise was reached between crypto firms and banks at the end of last month, with the crypto industry largely satisfied. However, following a White House Economic Advisory Council report minimizing the risk of stablecoin yields to the banking system, calls for amendments from the banking sector have intensified. Patrick Witt, Executive Director of the White House Crypto Council, criticized banks on the X platform for "further lobbying out of greed or ignorance." Senator Tillis proposed a "crypto carnival" face-to-face meeting, which might extend the timeline. He emphasized that issues remain to be negotiated but expressed optimism about arranging a review in the coming weeks. Beyond yield concerns, the Act must address ethical and DeFi-related clauses. This week's progress will determine the Act's fate, with the market closely watching developments.