U.S. Senator Angela Alshorbrooks stated that bipartisan negotiations surrounding the Clarity Act are nearing completion, but the Senate still needs to address ethical provisions, illegal financing content, and disagreements at the Agriculture Committee level before proceeding to a final vote. She emphasized that her previous committee votes in favor of advancing the bill do not constitute unconditional support for the final version.
Three issues remain to be addressed.
Alsaubrooks said the negotiations are "close to completion," but not truly over. She named three key issues: ethical terms acceptable to both parties, wording related to illicit financing pushed by Senator Catherine Cortez Masto, and the need for bipartisan consensus on the Agriculture Committee.
She stated that only after these issues are resolved can the bill proceed to the Senate's final review process. This means that although legislative progress has been made, there are still real obstacles in the final stage.
Stablecoin yield terms become the focus of compromise
Regarding stablecoins, Alsobrooks defended the yield cap arrangements in the bill. She stated that she had previously expressed concerns that allowing stablecoins to pay interest directly to holders could draw deposits away from the community banking system.
She said it took the negotiating parties about nine months to reach the current compromise. Under this arrangement, crypto companies cannot pay revenue simply because users hold stablecoin balances, nor can they launch products that are similar to bank accounts but lack bank-level protection.
She believes this version attempts to strike a balance between innovation and consumer protection, as well as the stability of the banking system. While it may not satisfy all parties completely, it at least avoids stablecoin products directly replicating the functionality of deposit accounts.
Democratic concerns focus on ethics and fraud.
Alsaubraks also stated that the Democratic Party's reservations about crypto legislation do not stem entirely from opposition to the technology itself, but rather from greater concerns about corruption, ethical risks, and fraud. She noted that some of these concerns are related to Trump's business interests, but also involve broader ethical issues within the digital asset industry.
She said that many lawmakers are currently most concerned with reducing scams and strengthening consumer protection, especially given that some investors have already suffered losses. She also emphasized that with tens of millions of Americans holding crypto assets, Congress can no longer treat digital asset regulation as a distant issue.
In her view, remaining at the negotiating table is a better way to ensure that voters' interests are reflected in the final bill than withdrawing from negotiations altogether. She also stated that digital assets are seen as a new economic opportunity by many young Americans, and the legislative goal should be to protect consumers while maintaining America's competitiveness in this area.
