US crypto bill stalls in Senate amid banking, industry clash

The passage of a U.S. bill on crypto market structure, known as the CLARITY Act, is being delayed in the Senate due to a standoff between the banking and cryptocurrency industries, BeInCrypto reported. The White House reportedly pushed for negotiations over the weekend to secure an agreement before March, but the two sides failed to narrow their differences, preventing even a committee vote from being scheduled. The central point of contention remains whether stablecoin holders can be offered interest on their assets. The banking sector is demanding strict limitations, arguing that interest-bearing stablecoins could function like bank deposits, a position opposed by crypto industry players like Coinbase. Disagreements also persist over other key issues, including the scope of restrictions on exchange incentives, the extent of obligations for DeFi developers, and regulatory jurisdiction.