CLARITY Act would ban stablecoin yields; Senate timeline turns critical

Garlinghouse: two weeks will decide CLARITY Act. Senate hearing is the hinge.

Ripple CEO Brad Garlinghouse tied the bill’s momentum to the Senate Banking Committee’s upcoming hearing. He said odds “drop precipitously” if it stalls, though he still expects progress. NewsBTC recap of Garlinghouse’s compromise remarks.

The draft would ban crypto firms from paying customers any interest or yield for simply holding payment stablecoins. Bitcoinist draft overview.

There’s a carve‑out for incentives or rewards. Only if they aren’t functionally or economically equivalent to bank deposit interest. NewsBTC coverage of incentives carve‑out.

This line between promos and “yield” is the core fight.

Banks are splitting over the compromise. Some large consumer banks object to parts of the wording. Others, including community banks, are more comfortable. Eleanor Terrett on X.

At least one major bank worries the language is too narrow. Crypto firms could repackage yield‑like rewards to resemble deposit interest. NewsBTC commentary on workaround risks.

Garlinghouse called the bill imperfect and a product of tradeoffs. “Do I think it’s perfect? Hell, no.” NewsBTC recap.

At publication, XRP traded at $1.41, up 2.5% over the week.