Crypto▲ Bullish
Stablecoin Rewards Fight Resurfaces as CLARITY Act Faces Sept. Vote
White House adviser Witt says he is 'bullish' on CLARITY Act. Stablecoin rewards fight and Trump ethics provisions resurface ahead of the Sept. 15 cloture vote.
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White House crypto adviser Patrick Witt said he remains "optimistic and bullish" on the CLARITY Act ahead of a planned September vote. The legislation faces renewed disagreements over stablecoin rewards and ethics provisions tied to President Donald Trump's cryptocurrency interests.
Witt spoke Tuesday at the annual SALT conference in Wyoming. He said the White House expects to work with Democratic lawmakers during the August recess to resolve remaining disagreements before the Senate considers the legislation.
"We'll be sitting down with Democrats and really trying to hash out the areas where there are disagreements and get a solid vote on the 15th," Witt said.
The Senate has scheduled a cloture vote for September 15. That gives lawmakers several weeks to negotiate the remaining issues.
The more than 600-page CLARITY Act would establish a federal regulatory framework for the cryptocurrency industry. The legislation has faced repeated delays as lawmakers debate several contentious provisions.
Stablecoin rewards resurface
One of the biggest disagreements has centered on stablecoin rewards. The question is whether platforms should be allowed to compensate users for holding stablecoins.
The issue has created tension between the cryptocurrency industry and traditional banking institutions. Both sides are pushing for different approaches to how stablecoin-based rewards should be regulated.
Earlier this year, Democratic Sen. Angela Alsobrooks and Republican Sen. Thom Tillis reached a compromise intended to resolve the dispute. Under the proposed framework, platforms would not be permitted to pay rewards simply because a user holds a stablecoin. Rewards could still be provided in connection with transactions and payments.
That compromise appeared to settle one of the biggest obstacles facing the legislation.
Senate Banking Committee Chair Tim Scott, a Republican from South Carolina, said Tuesday that the stablecoin issue has resurfaced. Speaking on a separate panel at the Wyoming conference, Scott suggested lawmakers would need to revisit the matter before the September vote.
"We thought it [stablecoin issue] was all settled," Scott said. He argued the remaining disagreements have once again become a significant part of the negotiations.
The renewed debate creates another obstacle for lawmakers who had hoped to use the August recess to prepare the legislation for a vote.
For the crypto industry, the stablecoin provisions are particularly important. The rules could influence how platforms structure rewards, payments and other services around dollar-pegged digital assets.