On February 14, news reports indicate that as the debate over the implementation of the CLARITY Act continues, the cryptocurrency community has proposed new principles to oppose the bill draft put forward by banks. The Digital Commerce Association of the Blockchain Industry Association released a set of guiding principles, emphasizing that a two-year study on the impact of stablecoins on bank deposits is acceptable, but opposing provisions that automatically generate regulatory rules.
Cody Carbone, CEO of the Digital Commerce Association, stated that the industry is willing to compromise on stablecoins with static yields similar to bank savings accounts but emphasized that crypto companies should still be able to offer rewards to customers for transactions and other activities. He called on banks to return to the negotiating table to avoid missing the opportunity to establish a fair reward mechanism.
Previously, a meeting between the White House, banks, and crypto companies did not reach a clear agreement. Banks insisted that any yields or rewards on stablecoins could undermine the deposit functions of the U.S. banking system. The new proposal from the Digital Commerce Association aims to find a balance and promote a compromise between the crypto community and banks.
Patrick Vit, Executive Director of the President’s Digital Asset Advisory Committee, pointed out that the window for passing the CLARITY Act is rapidly closing, and political focus will shift to the midterm elections. He emphasized that all parties need to remain flexible, and the advisory committee has held multiple meetings at the White House to facilitate a compromise between the crypto community and banks regarding the bill.
Analysts believe that this proposal could offer new ideas for stablecoin regulation and also highlight the complex position of digital assets within the financial system. As the midterm elections approach, the final direction of the CLARITY Act remains uncertain, but the crypto industry’s ongoing efforts to promote fair reward mechanisms may influence the bill’s details and regulatory framework.
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