Breaking the Stalemate: U.S. Lawmakers Push for Senate Adoption of Clarity Act

As the deadlock over regulations in the cryptocurrency asset market deepens, Republican leadership on the U.S. House Financial Services Committee, Representative French Hill, has taken action. According to The Block, Rep. Hill is advocating for the Senate to directly adopt the “Clarity Act,” which has gained bipartisan support, to accelerate progress on the stalled Digital Asset Market Structure Bill.

The Root of the Deadlock: Conflicts Over Stablecoins

The underlying cause of the current deadlock is a longstanding dispute over regulatory policies concerning the profits of stablecoin issuers. The “GENIUS Act,” passed last year, strictly prohibits stablecoin issuers from paying interest directly. Meanwhile, it permits third-party platforms like Coinbase to offer rewards, creating a contradictory regulatory framework that has sparked fierce opposition from various sectors.

Divergent Views Between the Banking Industry and the Crypto Sector

The banking industry strongly supports the GENIUS Act framework. They argue that easing regulations on stablecoins would accelerate the outflow of funds from traditional bank deposits to crypto platforms. In contrast, the crypto industry holds a very different view. They criticize excessive profit restrictions as stifling innovation and advocate for a more flexible regulatory environment. This fundamental disagreement is a major factor making it difficult to resolve the deadlock.

New Possibilities Indicated by the U.S. Treasury Department

Moves to break the deadlock are also emerging from another angle. The U.S. Treasury Department’s Office of the Comptroller of the Currency has published proposals on how to implement the GENIUS Act and has begun soliciting public comments. This regulatory intervention could potentially ease current tensions through the development of implementation guidance separate from the legislative process in Congress.

Urgency to Resolve the Deadlock

Experts warn that without resolving the stablecoin profitability issue, the entire Digital Asset Market Structure Bill could face a crisis. Prolonged regulatory uncertainty would significantly impact market participants’ business plans. Whether the current deadlock can be broken quickly is becoming a critical turning point that will influence the future of U.S. cryptocurrency policy.