CLARITY Act Update: Senate Draft vs. House Version 🚨 Major changes from Senate Banking Committee: **Stablecoins** ❌ Passive yield/interest prohibited (win for banks) ✅ Activity-based rewards allowed (staking, liquidity, payments, governance) **DeFi Protections** • Innovation sandboxes added (up to $20M, 2-year testing) • Clear decentralization pathways to transition from SEC → CFTC oversight **Self-Custody & Developers** • Explicit protections for wallet providers, validators, node operators • Open-source developers exempt from broker/money transmitter rules **Consumer Protection** • Stronger bankruptcy provisions—customer assets segregated and returned in insolvency • Banks can offer custody/staking under defined framework **Other Key Additions** • $150M CFTC funding authorization • Anti-CBDC language restricting retail CBDC issuance • ETP-backed tokens (as of Jan 1, 2026) get exemption Markup happens Thursday with a 48-hour amendment window. The Senate draft balances crypto innovation with traditional banking concerns—moving from enforcement-based ambiguity to statutory clarity. 📜