Congressional sources told Eleanor Terrett of Crypto In America that the Senate Banking Committee could release its long‑awaited draft of the CLARITY Act as soon as next week — a development that comes amid rising industry pushback over recent changes to the bill’s core provisions. The latest draft reportedly would broadly ban platforms from offering yield “directly or indirectly” on stablecoins or on assets that act like bank deposits. Lawmakers would still allow activity‑based incentives — such as loyalty points or promotional rewards — but would charge regulators with defining which incentives are permissible and with writing anti‑evasion rules within a year. That shift has drawn sharp criticism from crypto firms and advocates, who argue the language tilts in favor of incumbent banks and risks gutting popular rewards programs that help onboard and retain customers. The market reacted quickly: shares of Circle (CRCL), issuer of the USDC stablecoin, plunged roughly 20% toward $100 during Tuesday trading after reports about the potential restrictions. Tensions escalated midweek when Coinbase told Senate offices it could not support the newly inserted language. Sources told Terrett that Coinbase’s Global Head of Investment Research, David Duong, said industry players are collaborating on a counterproposal aimed at showing why targeted edits are needed to protect customers and preserve sustainable rewards programs. With a release potentially imminent, several questions remain unanswered: will the Banking Committee announce a formal markup date for the CLARITY Act portion; how much of the draft could still change before a committee vote; and how will Coinbase and other stakeholders formalize and present their counterproposal to lawmakers? For now, lawmakers appear to be threading a narrow needle — tightening rules around crypto “yield” while trying to preserve some customer incentives — even as industry groups warn that overly broad restrictions could stifle innovation and limit consumer choice. Image: OpenArt. Chart: TradingView.com. Source: Eleanor Terrett / Crypto In America. Read more AI-generated news on: undefined/news

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