原文标题：US Senate Committee set to consider long-awaited crypto bill next week Original author: Hannah Lang, Reuters
Editor's Note: US crypto regulation is once again entering a critical phase. On May 14, the US Senate Banking Committee will consider the CLARITY Act, legislation long pushed by the crypto industry, which attempts to establish a clearer regulatory framework for the US digital asset market. Its core is not merely a "positive development for the crypto industry," but rather an attempt by the US to reintroduce long-standing regulatory controversies into the congressional legislative process.
Specifically, the CLARITY Act addresses three main issues.
First, it clarifies the regulatory boundaries between the SEC and CFTC regarding digital assets. For the past few years, crypto companies have faced a long-standing issue of unclear regulatory jurisdiction: whether an asset should be regulated by the securities regulator SEC or the commodity regulator CFTC often depends on enforcement and case-by-case judgment. If this bill is implemented, it will define clearer boundaries of authority for regulatory agencies, reducing the legal uncertainty the industry has long faced.
Second, determining when a token falls under the categories of security, commodity, or other category. This is one of the most critical compliance issues in the crypto industry. For project teams, trading platforms, and investors, the token's attributes determine their issuance, trading, disclosure, and regulatory responsibilities. The legislation attempts to provide a more stable legal identity for digital assets through institutionalized classification, and to establish fundamental rules for future product design and market access in the industry.
Third, stablecoin reward terms aim to mitigate the conflict between crypto companies and banks over deposit outflows. Under the current compromise, users holding idle USD stablecoins cannot receive rewards similar to deposit interest, as this is considered too similar to bank deposits; however, rewards related to stablecoin use cases such as payments and transfers will still be permitted. In other words, regulators are attempting to distinguish whether stablecoins are payment instruments or a form of disguised deposit product.
This is also where the conflict between the banking and crypto industries is most acute. Banks worry that if intermediaries such as trading platforms can pay returns to stablecoin holders, funds could flow out of the insured banking system, weakening the deposit base of traditional banks and posing financial stability risks. Crypto companies, on the other hand, argue that prohibiting third parties from offering returns related to stablecoins is essentially protecting the existing interests of banks and restricting market competition.
Therefore, the significance of the Clarity Act extends beyond the crypto industry itself. It's not just about classifying tokens and defining the roles of regulators; it's about redefining the financial boundaries between banks, exchanges, stablecoin issuers, and payment platforms: How much can stablecoins resemble bank deposits? How deeply can crypto companies penetrate payment and savings scenarios? And can traditional banks continue to monopolize the right to "earn interest on dollar balances"?
The next step, whether the bill can garner enough support from Democratic senators, will determine whether US crypto regulation can move from years of protracted wrangling to actual implementation. The most noteworthy aspect is not whether the Claritism Act simply "benefits crypto," but rather that the US is placing stablecoins and digital assets at the core of its financial infrastructure competition. Once regulatory boundaries are defined, the future distribution of profits between crypto companies and traditional banks will be rewritten.
The following is the original text:
U.S. senators are expected to consider a long-awaited bill next week. This bill would establish a regulatory framework for cryptocurrencies and could potentially break the deadlock that has previously pitted crypto companies against the U.S. banking industry.
If signed into law, the bill, known as the CLARITY Act, will clarify the jurisdiction of financial regulators over this rapidly growing industry and could further promote the adoption of digital assets.
Senator Tim Scott, chairman of the Senate Banking Committee, said Friday that the committee will hold an executive meeting on May 14 at 10:30 a.m. (2:30 p.m. GMT) at the Dirksen Senate Office Building in Washington, D.C.
The crypto industry has been pushing for this legislation, arguing that it concerns the future of digital assets in the United States and is necessary to address core issues that have long plagued crypto companies. Among other things, the bill would define under what circumstances crypto tokens fall under the categories of securities, commodities, or other classes, thus providing legal certainty for the industry.
The bill also includes a provision aimed at resolving a heated dispute between crypto companies and the banking industry. Under a compromise brokered by Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks, rewards for idle dollar-backed crypto token (i.e., stablecoin) holdings would be prohibited because such arrangements are too similar to bank deposits.
However, rewards generated from other stablecoin-related activities, such as payment transfers, will be permitted. Banking trade organizations oppose this arrangement, arguing that it gives crypto companies too much room to maneuver and could lead to an outflow of deposits from the regulated banking system.
Ahead of the hearing, the banking industry is launching a final effort to garner support from some Republicans on the Senate Banking Committee to switch sides, but it remains unclear whether they will succeed.
Banking lobbyists have been pushing for amendments to the Clarity Act to close a loophole created by legislation signed into law last year. This loophole allows intermediaries to pay interest on stablecoins. Banks argue that this would lead to deposits flowing out of the insured banking system and could threaten financial stability.
Crypto companies argue that prohibiting cryptocurrency exchanges and other third parties from paying interest on stablecoins would constitute anti-competitive behavior.
The crypto industry hopes the CLARITY Act will pass in the coming months, completing legislation before the November midterm elections. This would give Democrats a chance to regain control of the House of Representatives.
The House of Representatives passed its version of the CLARITY Act last July, but the Senate needs to pass the bill by the end of 2026 before it can be sent to President Donald Trump for his signature.
Many congressional Democrats have opposed the bill, arguing that it is insufficient in its anti-money laundering provisions and that more measures should be taken to prevent political officials from profiting from crypto projects.
The bill needs the support of at least seven Democrats to pass in the full Senate.
President Trump actively lobbied for funding for the crypto industry and pledged to be a "crypto president." Meanwhile, his family's own crypto business propelled the industry further into the mainstream.
Click to learn about BlockBeats' job openings.
Welcome to the official BlockBeats community:
Telegram subscription group:https://t.me/theblockbeats
Telegram group:https://t.me/BlockBeats_App
Official Twitter account:https://twitter.com/BlockBeatsAsia
