The US Senate is moving forward with the Digital Asset Market Clarity Act, with White House crypto adviser Patrick Witt indicating that progress has been made on several key issues. In a recent interview, Witt noted that a compromise on stablecoin yield has been reached, which he believes will hold as the Senate advances its crypto bill. Despite warnings from bankers, Witt expressed confidence that the compromise will be durable, allowing the bill to move forward.
The Clarity Act aims to provide clarity on the regulation of digital assets, and its passage is seen as a crucial step in the development of the US crypto industry. Witt also acknowledged that other issues, such as illicit financial protections in the DeFi space and requests from Democrats to bar senior government officials from profiting from the crypto sector, are being worked out behind the scenes.
While some issues have already been resolved, Witt declined to specify which ones, citing ongoing negotiations. The bill will need to undergo a markup hearing in the Senate Banking Committee before it can be put to a final vote. A recent report from White House economists downplayed the threats posed by stablecoin yield, which was met with a response from the American Bankers Association.
Witt noted that the view of bankers on stablecoins is wide-ranging, depending on their proximity to the technology, with some viewing them more positively and others feeling threatened.