As the end of the month approaches and negotiations continue, the much-debated crypto market structure law is known as CLARITY Act he is facing a critical time in Washington.
The bill, which aims to establish clear rules for digital asset markets in the United States, has encountered significant hurdles in recent weeks as lawmakers, regulators, banks and representatives of the crypto industry continue to debate key provisions.
Despite these setbacks, the recently appointed Chairman of the Commodity Futures Trading Commission (CFTC) Mike Selig expressed great confidence that this law will become law.
CFTC Chief Optimistic On CLARITY Act
In an interview on FOX Business on Tuesday, Selig said the bill is “close to being signed,” indicating that he hopes Congress will eventually push it through.
“We want to make sure that the legal framework of cryptocurrencies is compatible with future developments. We cannot allow the second Gary Gensler to come in and destroy everything. We will make this thing cross the line,” he added.
Selig’s words build on a statement he made earlier this month. On February 3, he said that the market structure bill going through Congress could set the United States as the “gold standard” for crypto regulation.
According to for Selig, the industry has long operated without clear guidelines, causing businesses and innovation to move overseas. “Goal [of this legislation] just to get some clarity.
It’s been a long time since these markets lost their strength, and they fled to the coast.” He also hinted that the finalized bill could reach President Donald Trump’s desk “in the next few months,” praising the president’s leadership and support for the cryptocurrency industry.
However, as the White House’s end-of-month deadline approaches, a major sticking point remains unresolved: whether stablecoins it must be allowed to yield.
Crypto, Banks Remain Divided by Stablecoin Rewards
Reporter Eleanor Terrett report Monday in Crypto In America that discussions between the crypto and banking industries have not yet produced a compromise on the issue, which is widely seen as the linchpin for the development of the CLARITY Act.
Last Tuesday, policymakers from banks and crypto firms met at the White House. The meeting ended without an agreement after bank representatives distributed a one-page document titled “Yield and Interest Prohibition Principles,” which stated that stablecoins should not provide yield or rewards to owners.
In response, the Digital Chamber, a trade group representing more than 130 crypto firms and several traditional banks with digital asset exposure, released its proposed draft on Friday.
The organization has proposed regulations that will allow payment stablecoins to generate internal yields decentralized finance (DeFi) systems.
The group said its recommendations are aimed at preserving stablecoins as means of payment, protecting the liquidity of DeFi and strengthening the dominance of the US dollar, while introducing a robust, data-driven approach to assessing potential impacts on bank deposits.
Banks have not yet officially responded to the Digital Chamber’s proposal. However, a source close to the Senate Banking Committee described the document on Crypto In America as “constructive,” although it warned that some aspects may be too broad to gain full support from financial institutions.
The next steps remain uncertain. Patrick Witt, executive director of the White House Crypto Council, told Yahoo Finance on Friday that another meeting could be held as early as this week, although no specific date was given.
Featured image from Openart, chart from TradingView.com
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