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Could we FINALLY be seeing some movement on the CLARITY Act?
Senate Banking Chair Tim Scott just said he expects a stablecoin yield proposal in his hands by the end of this week.
Scott's exact words: "This week we will have the first proposal in my hands."
Stablecoin yield has been the fight holding this bill hostage for the past few months.
The sticky question: can stablecoin issuers pay holders interest?
Banks hate the idea. If your USDC earns 4%, why keep cash at Chase?
Crypto's counter: stablecoins are already earning yield on the backend through T-bills. The issuer just keeps it. The holder sees nothing.
That's what the compromise is trying to solve.
The draft coming this week will likely allow some form of yield - capped, tiered, or restricted to certain holder types.
If it does:
- Circle and other issuers get a direct shot at competing for deposit dollars
- Banks lose the objection that's been stalling this bill since last year
- Everyday holders could earn passive income on dollar-pegged assets without touching DeFi
If Scott gets buy-in on this draft, the GENIUS Act goes from stalled to real.
Watch for the proposal this week.
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