The CLARITY Act seeks to resolve the long-running jurisdictional dispute between the Securities and Exchange Commission and the Commodity Futures Trading Commission over digital assets, assigning the CFTC primary oversight authority over digital commodities while preserving SEC authority over tokens classified as securities. It also sets registration and disclosure requirements for crypto trading platforms and token issuers. The House passed its version of the bill in 2025, but the Senate has advanced a narrower iteration that imposes stricter customer-protection requirements and limits regulatory discretion — setting up a “high-stakes negotiation” between the two chambers over the final text.

The thorniest unresolved issue has been stablecoin yield. An earlier draft of the Senate’s CLARITY Act included language prohibiting stablecoin issuers from paying interest or yield solely for holding a stablecoin balance — a provision designed to prevent payment stablecoins from competing directly with insured bank deposits. The clause would permit activity-based rewards tied to real usage — such as payments, liquidity provision, staking, or network governance participation — but bar passive yield simply for custody. Coinbase cited these provisions as grounds for withdrawing its support for the bill, while banking groups backed the restrictions.

Wednesday’s statement from Lummis offered the most encouraging signal yet that this impasse is breaking. She said a solution on the stablecoin yield question “has been largely reached,” and added that disputes over DeFi-related provisions have also “been properly addressed”. Sources familiar with the negotiations had previously described talks between legislators and industry as moving “in the right direction,” with Digital Chamber CEO Cody Carbone expressing optimism about securing an affirmative vote.