- John Thune still plans to seek a CLARITY Act procedural vote before the August recess, with Senate consideration possible in September.
- Senate negotiations remain focused on stablecoin yield provisions and unresolved ethics issues as lawmakers work to secure enough votes.
- Coinbase’s Faryar Shirzad defended CLARITY’s stablecoin rules, arguing the bill would prevent passive yield while supporting regulated innovation.
Senate Majority Leader John Thune still plans to seek a procedural vote on the CLARITY Act before August recess. Journalist Eleanor Terrett reported Saturday that Thune’s office told crypto industry leaders about the plan. The move could allow lawmakers to vote on the bill when the Senate returns in September.
Senate Talks Focus On Yield And Ethics
According to Terrett, negotiators still need votes that currently remain unavailable. They also face renewed disagreements over stablecoin yield provisions. The issue has gained attention after recent Wall Street Journal opinion pieces.
Banks have also pressed Republican senators to change parts of the bill. However, negotiators must address another issue involving ethics. Terrett reported that sources had received no update from the White House on an agreement.
Coinbase Chief Policy Officer Faryar Shirzad said the Senate’s failure to begin consideration this week was disappointing. He welcomed Thune’s stated intention to take up the legislation in September.
Shirzad said financial regulators continue using existing powers to provide clearer digital asset rules. He also said governments and financial institutions outside the United States are advancing blockchain adoption.
Debate Grows Over Stablecoin Rules
Shirzad also criticized a Wall Street Journal editorial that questioned CLARITY’s stablecoin provisions. He disputed claims that the bill creates a loophole allowing passive stablecoin yield.
According to Shirzad, the GENIUS Act created a regulated market for payment stablecoins. He said CLARITY would prohibit passive, deposit-like rewards while allowing incentives linked to stablecoin use.
Shirzad also challenged concerns about community bank deposits. He cited Charles River Associates research that found no evidence of community-bank deposit flight during USDC’s growth.
He added that roughly 70% of dollar stablecoins are held outside the United States. Shirzad also said GENIUS requires stablecoins to maintain one-to-one backing with cash and highly liquid reserves.
Meanwhile, he argued blockchain infrastructure could give smaller banks access to continuous settlement and cross-border payments. He said stablecoins could also provide treasury services without megabank infrastructure.
Shirzad said September should be the point when lawmakers complete work on CLARITY. Thune’s office has not indicated that the planned September consideration has been abandoned.
