Stablecoin Dispute Continues

Work on the CLARITY Act in the United States is still underway, but banks have not given up on their efforts to introduce a ban on interest-bearing stablecoins. This comes despite an earlier compromise that appeared to settle the issue.

According to journalist Eleanor Terrett, representatives of the banking sector have been meeting with senators during banking association conferences held across the country. The primary focus of these discussions is the issue of stablecoin interest payments, which banks have long sought to restrict.

JPMorgan CEO Jamie Dimon has previously voiced opposition to interest-bearing stablecoins as well. Sources cited by Terrett claim that the matter remains unresolved, with many senators still reviewing the details of the legislation. Their votes could play a crucial role when the bill eventually comes to a final vote.

At the same time, lawmakers continue to negotiate other aspects of the proposal. Republicans are working to reach agreements with Democrats on issues related to ethics rules and decentralized finance (DeFi). The legislation must also be reconciled with a separate version prepared by the Senate Agriculture Committee.

The Senate is attempting to accelerate work on the bill ahead of the August recess. Additional meetings dedicated to the legislation have taken place in recent days. Meanwhile, Acting Attorney General Todd Blanche has been holding discussions with law enforcement officials regarding their concerns about the DeFi sector.

Expectations for the bill’s swift passage have also declined. Data from Polymarket shows that the odds of President Donald Trump signing the CLARITY Act into law this year have fallen to 48%, down from 74% at the beginning of May.

Galaxy Digital has also lowered its forecast. The company now estimates a 60% chance of the legislation being passed this year, compared with its previous projection of 75%.

Despite these setbacks, some policymakers remain optimistic that Congress can approve the CLARITY Act by July 4. Among them is Patrick Witt, President Donald Trump’s cryptocurrency adviser. However, the Senate has not yet scheduled a final vote on the legislation.