Bank opposition stalls CLARITY Act; Reuters says 2026 passage in doubt

Banks reject the White House’s CLARITY Act compromise. Stablecoin rewards are the sticking point, putting passage before midterms in doubt Reuters.

The bill hits a fresh stalemate. Reuters says the law may slip past 2026 Reuters. Background on the market-structure push is here Bitcoinist.

Banks oppose allowing yield products and customer rewards by stablecoin issuers. They warn of deposit flight and tighter loan funding Reuters.

Crypto firms say rewards are essential. They accepted a White House offer to allow rewards only for P2P payments and ban them on idle balances. Banks still said no Reuters.

Key points for investors:
- White House compromise permits limited stablecoin rewards on P2P activity. No rewards on idle balances Reuters.
- Four sources say crypto firms agreed. Banks want far stricter limits Reuters.
- Several senators back banks’ position, raising odds of tougher terms Reuters.
- Lawmakers also split on ethics and illicit finance provisions Bitcoinist.

Time is tight. Senate floor time shrinks as campaigning starts. Advocates say the practical window is July to send the bill to the President. After that, momentum fades into midterms Reuters.

Geopolitics adds drag. Analysts cite the Iran war as a competing priority Reuters.

“The calendar is becoming the enemy of this bill,” wrote Brian Gardner of Stifel Reuters.