Senate shelves Clarity Act, leaving crypto’s yield truce with banks in limbo

The United States Senate has moved the crypto Clarity Act to the back of its schedule, and the slowdown has stalled an important agreement between the crypto industry and the banking lobby on the possibility for stablecoins to yield money to their investors.

The aforementioned agreement is incorporated in the legislation. Banks have spent months negotiating to keep stablecoin issuers from offering interest-like returns on their stablecoin, which may lead to a loss of deposits from banks.

The resulting provisions stop providers from offering returns for simply holding stablecoins while still allowing them to reward customers for engaging in activities that are not equivalent to deposit interest, according to a research by Galaxy. As long as the voting is delayed, this arrangement is not signed into law.

Russia sanctions and a senator’s funeral jump the line

It appears that Senate Majority Leader John Thune has prioritized other issues. It was reported that Thune began the process to approve several nominations on Monday and will tackle a package of sanctions against Russia at the Tuesday night Senate session, at which point he will initiate the clock on cloture.

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