US Senate Considers Crypto Clarity Act

The United States is set to consider the Clarity Act, a long-awaited bill aimed at creating a regulatory framework for Tether (cryptocurrency). This legislation seeks to clarify financial regulators' jurisdiction over digital assets and define whether crypto tokens are securities or commodities. A key provision of the bill, brokered by Senators Thom Tillis and Angela Alsobrooks, addresses stablecoin rewards, prohibiting interest on idle holdings while permitting rewards for active use. This compromise has sparked opposition from the Bank, which fears a shift of deposits from the regulated banking system. The crypto industry, however, views the bill as existential for its future in the United States. The United States — United States House of Representatives passed its version of the Clarity Act last year, and the Senate needs to approve it by the end of 2026 to send it to President Donald Trump's desk. The bill faces opposition from some Democrats who argue it is too weak on anti-money laundering provisions.