Recently, it seems that momentum around stablecoin regulation has been accelerating. There were reports that the Senate Republicans are already in the final stages of finalizing the stablecoin yield provisions in the CLARITY Act.

In the private meeting in March, an executive director from the White House Cryptocurrency Council reportedly joined and conferred with major senators. According to what we’ve heard, the issue of stablecoin yields is almost 99% settled, and what remains is not technical challenges but only political adjustments.

However, what’s concerning here is the contents of the yield compromise proposal. According to market observers, this proposal could potentially favor the traditional banking system, and the CEOs of major exchanges may end up having to accept stricter conditions. In other words, it’s about how the result of reconciling interests between existing financial institutions and the cryptocurrency industry will come out.

On the other hand, there are also claims that ethical issues related to voting transactions and the Insider Trading Prevention Law remain unresolved.

As for the schedule, the CLARITY Act passed the House in July last year and passed the Senate Agriculture Committee in January. And now, in the latter part of this month, revision work is scheduled at the Senate Banking Committee. However, there is also concern that new elements—such as provisions to ease regulations for regional banks—could be added, which would further complicate the bill’s progress.

For the crypto asset market, the direction of this regulation is likely to become an important turning point.