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The implementation of new regulations regarding the proposed Clarity Act has been delayed, which reflects the divisions among US policymakers with regard to the place of stablecoins in the financial system. The debate revolves around the question of whether platforms should be allowed to yield on stablecoin holdings.
According to a Politico report, Senator Thom Tillis acknowledged that the draft will likely not be released this week, saying that he wants clarity on the timing of the upcoming Banking Committee markup before publishing the text to the public.
There are early signs that the draft will likely remain in the same format. It suggests prohibiting rewards for idle stablecoin balances and rewards for active usage. However, this distinction is one of the key technical and regulatory issues to be defined and enforced.
The fundamental question in the discussion is whether stablecoins should be used as a means of payment or transformed into financial instruments that generate returns.
In the current US legislation, in the framework of the GENIUS Act, the issuers of stablecoins are forbidden to provide interest directly. Nonetheless, it creates uncertainty around third-party platforms such as exchanges, which can offer rewards—a regulatory void that the Clarity Act is designed to fill.
The traditional banks claim that the yield on stablecoins would attract deposits out of the banking system and may limit the ability to lend and disrupt financial intermediation. Conversely, crypto firms argue that a capped yield would reduce competition and stop the formation of blockchain-based financial services.
The Clarity Act was initially thought to be advanced by the end of 2025, but the deadline has been shifted to 2026 because of unresolved controversies. Senator Angela Alsobrooks is working with Tillis to develop language in the Clarity Act to end the long-standing debate on whether cryptocurrency companies should be allowed to pay interest on idle stablecoin balances.
The White House has also gotten involved in the issue, with several closed-door meetings between regulators, banks, and crypto companies held there. Nevertheless, a point of agreement is still elusive, which highlights the structural complexity of incorporating digital assets into the current financial frameworks.
Also Read: Cynthia Lummis Says 2026 May Be Congress’s Last Chance to Pass CLARITY Act
