The draft of the U.S. Senate cryptocurrency market structure bill 'Clarity' is expected to be released next week. However, attention is focused on whether the content will be modified as industry backlash grows over provisions limiting stablecoin returns.
According to a report by Eleanor Theret of Crypto in America on Friday, the Senate Banking Committee is ready to release the draft of the bill as early as next week. This bill is considered key legislation that will define the regulatory framework for the cryptocurrency market.
Controversy over the clause banning stablecoin profits
The latest draft released this week is reported to include provisions that broadly prohibit the provision of 'direct or indirect' interest or returns on stablecoins and deposit-like assets.
Instead, 'activity-based incentives' such as points and promotional rewards are permitted, but the specific scope of their allowance is delegated to regulatory authorities to determine within one year. At the same time, detailed regulations are also planned to prevent regulatory evasion.
The industry is strongly pushing back against these changes. Critics point out that the clause favors the existing financial sector and could weaken reward programs designed to encourage user participation.
The market reacted immediately as well. Shares of Circle ($CRCL), the issuer of the stablecoin USDC, plummeted about 20% on Tuesday when the news broke, falling to the $100 (approximately 150,900 won) level.
Coinbase Takes Official Opposition
In the middle of the conflict, the tension escalated further as Coinbase conveyed to the Senate its position that it could not support the provision.
David Duong, Head of Global Investment Research at Coinbase, stated that the industry is preparing a joint response and emphasized that legislative amendments are necessary to protect customers and maintain a sustainable rewards structure.
The current discussion centers on three key points: when the Senate Banking Committee will finalize the official review schedule, how much the draft will be modified, and in what form the industry, including Coinbase, will present alternatives.
Meanwhile, the total market capitalization of the cryptocurrency market has recently fallen to around $2.26 trillion, and regulatory uncertainty is affecting investor sentiment.
While the bill seeks a 'compromise' that strengthens profit regulations while allowing some incentives, the industry warns that excessive restrictions could stifle innovation and consumer choice. A full-scale power struggle is expected to follow the release of the draft.
🔎 Market Analysis
Ahead of the U.S. Senate's release of the draft 'CLARITY' bill, the provision banning stablecoin interest has emerged as a key point of contention. Growing regulatory uncertainty has led to increased market volatility, including a sharp drop in the stock price of USDC issuer Circle.
💡 Strategic Points
It is necessary to prepare for the possibility of a reduction in stablecoin-based revenue models. Designing alternative incentive structures is crucial for exchanges and DeFi platforms, and increased stock price volatility for related companies is expected depending on regulatory directions.
📘 Glossary
Stablecoin: A cryptocurrency pegged to the value of fiat currency, such as the dollar.
CLARITY Bill: A U.S. legislative proposal to define the structure and regulatory standards of the cryptocurrency market.
Activity-based incentives: A reward structure paid based on specific actions, such as transactions or usage.
💡 Frequently Asked Questions (FAQ)
Q. Why is the clause banning stablecoin interest controversial?
Q. What is the impact of the bill on the market?
Q. What should we pay attention to going forward?
TP AI Important Notes
The article has been summarized using a language model based on TokenPost.ai. Key points of the text may be omitted or inaccurate.
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