U.S. Treasury Secretary Scott Bessent called crypto leaders resisting the Clarity Act “nihilists” as the bill remains stalled over stablecoin yield disputes with midterm elections threatening passage.
The Nihilists Attack
“A growing share of crypto development has relocated to places with clear rules, such as Abu Dhabi and Singapore”, Bessent wrote in The Wall Street Journal.
Though industry nihilists may argue otherwise, there is one way to give developers and entrepreneurs the comfort to reshore: durable law.
“Congress has spent the better part of half a decade trying to pass a framework to onshore the future of finance”, Bessent added.
The Senate Banking Committee must hold a markup and send the CLARITY Act to President Trump’s desk.
The Stablecoin Yield Standoff
The most prominent dispute pits certain crypto companies against the banking industry over the payment of yield on stablecoin holdings to customers.
In January, Coinbase (NASDAQ:COIN) pulled its support for the Clarity Act over potential language that could have restricted stablecoin yield programs.
For months, both industries have gone back and forth trying to find a compromise.
Last month, a bipartisan group of senators and the White House proposed a final compromise.
Coinbase took issue with the proposal. A revised proposal is now floating around Capitol Hill, but the banking industry opposes it.
The banking industry continues to offer constructive ideas for tightening the yield prohibition because of real risks to lending and economic growth, a source said.
The Trump Ventures Problem
Even if lawmakers resolve the stablecoin yield issue, several hurdles remain. Pro-crypto Senate Democrats say Congress must outlaw Trump’s personal crypto ventures to secure their support. The White House has rejected those demands.
The subject will likely resurface prominently in coming weeks.
The backers of Trump’s meme coin will host an exclusive event for top token holders at Mar-a-Lago on April 25, as lawmakers push the Clarity Act through the Senate Banking Committee.
The event promises to feature Trump at a “gala luncheon.” The president is set to attend the White House Correspondents’ Dinner in Washington later that evening.
The Midterm Deadline
Congressional leaders worry time is running out for the Clarity Act to pass this spring before November’s midterm elections grind all legislative activity to a halt over the summer.
The Clarity Act passed the House in July 2025 with a bipartisan 294-134 vote but has stalled in the Senate.
The authors initially pushed to have the bill passed by last July, with timelines slipping to September, December, and ultimately this January.
Key pro-crypto senators have signaled that if the bill isn’t passed by May, it’s unlikely to pass this year under the current Republican trifecta.
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