《CLARITY Act》 Faces Key Showdown This Week: Banking Pressure Could Lead to Vote Delay Until May

BlockBeats News, April 20th: The U.S. "CLARITY Act" entered a key negotiation period this week, and whether it will receive the long-awaited committee review in April or be postponed to May will depend on recent developments. The Senate Banking Committee focused on the confirmation hearing of Federal Reserve Chair nominee Kevin Warsh at the beginning of the week. Subsequently, the committee needs to decide by Friday whether to schedule a hearing on the bill for a vote during the week of April 27th.

Banking groups, represented by the North Carolina Bankers Association, are lobbying against the stablecoin yield restriction provision in the bill, urging members to call Senator Thom Tillis's office for amendments. Industry groups are also reportedly reaching out to other committee members.

After over two months of negotiations, the crypto industry and banks reached a compromise at the end of last month, with the crypto industry being generally satisfied. However, the banking sector's calls for amendments have intensified following a White House Economic Advisory Council report downplaying the risk of stablecoin yields to the banking system.

Patrick Witt, Executive Director of the White House Crypto Council, criticized banks on X platform for "further lobbying out of greed or ignorance." Senator Tillis proposed holding a "crypto carnival" in-person meeting, which could extend the timeline. He emphasized that there are still issues to be negotiated but expressed optimism about scheduling a review in the coming weeks.

In addition to the yield issue, the bill also needs to address ethical and DeFi-related provisions. This week's progress will determine the fate of the bill, with the market closely watching.