US Senate to discuss stalled crypto bill CLARITY Act, aiming to clarify crypto rules and stablecoin rewards.

The US Senate is set to address the long-delayed CLARITY Act, a bill that would create a regulatory framework for cryptocurrencies. The legislation aims to define when crypto tokens are securities or commodities, providing legal clarity for the industry. A key compromise prohibits customer rewards on stablecoin deposits but allows rewards for other stablecoin activities like payments, balancing innovation with banking system protections. Banking groups are lobbying for stricter limits on stablecoin rewards, indicating ongoing negotiations ahead of the Senate Banking Committee session on May 14.