CLARITY Act Stalls: Banks and Crypto Firms in Key Regulatory Battle

The regulatory dispute surrounding stablecoin yield distribution is reshaping the landscape of the U.S. digital asset market. On one hand, traditional banking institutions have been hesitant to deploy billions of dollars into related businesses due to the lack of a clear legal framework. According to former CFTC Chairman Giancarlo, if Congress fails to introduce clear rules as soon as possible, U.S. banks may lag behind their overseas counterparts in global competition. On the other hand, crypto companies are not restricted by the legislative process and continue to promote technological innovation, forming a stark contrast.

Banks insist that any yield distribution service must be built on regulated and verifiable underlying assets, opposing high-yield models without tangible support. The crypto industry, however, calls for a more flexible regulatory environment to promote financial innovation. The stalemate between the two sides has led to slow legislative progress.

The CLARITY Act needs to be passed by the full Senate and signed by the President to take effect. President Trump has publicly urged Congress to speed up the review, saying that the bill is crucial to maintaining the United States' leadership in the field of digital assets. JPMorgan Chase analysts predict that if key milestones proceed as scheduled, the bill is expected to be implemented by mid-2025. If the bill fails to make a breakthrough before April, SEC Chairman Paul Atkins and CFTC Chairman Mike Selig may launch an independent regulatory path to fill the gap through administrative rules. Although such measures do not have the same legal effect as legislation, they can provide transitional guidance for the market. The committee review meeting originally scheduled for January has been postponed, and lawmakers are now considering holding a review meeting before the end of March to maintain the legislative timeline. This game is not only about the success or failure of the bill, but also about determining the role boundaries between traditional banks and crypto platforms in the future U.S. financial system. All parties in the market are closely watching the legislative developments, expecting a regulatory framework that can prevent risks and stimulate innovation to take shape as soon as possible.