When Will the Major Cryptocurrency Bill the Clarity Act Be Passed? Coinbase Has Spoken

A critical topic about cryptocurrency regulation in the US is that David Duong, Head of Global Investment Research at Coinbase, offered his current review on the CLARITY Act process – one of the most important issues to be addressed.

The issue of stablecoin rewards once again became one of the main points of contention, Duong said, as the bill resurfaced this week.

Thom Tillis, left, and Angela Andbrooks, right, said last week that the Senate Banking Committee had reached an agreement in principle to pave way for the bill. But a new framework that emerged on March 24 suggested major changes in the details of the rule.

However, the new proposal reportedly only anticipates that return payments paid on passively held stablecoin balances are prohibited; more limited reward mechanisms associated with activities such as payment transactions or platform use were permitted. It is said that this strategy seeks to address banks’ concerns about deposit outflows but not ‘kill innovation in stablecoin products’ completely.

Related News

Why is Bitcoin Price Down Today? Testing Below $65,000 – Here Are the Liquidations and Key Data

On the other hand, crypto industry representatives have been working on a coordinated counter-proposal calling for changes to the current draft in order to protect users and ensure that sustainable reward models are continued. Duong says ‘It is the baseline scenario that rules on stablecoin rewards could be clarified within the next three weeks. Other pending issues are also likely to be resolved in the course of this process, including making a viable “gateway” for SEC and maintaining the institution’s exemption authority.

Other important things are timing expectations. According to these expectations, the Senate Banking Committee could vote for putting up that bill in mid-April; and when required by law conditions are met, it may be final approval as early as May.

*This is not investment advice.

Thanks for reading When Will the Major Cryptocurrency Bill the Clarity Act Be Passed? Coinbase Has Spoken