Interesting to see how banks are putting enormous pressure on the negotiations of the CLARITY Act. A Chainlink executive recently revealed that traditional financial institutions have lobbied very strongly to block any yield features in cryptocurrencies, especially in stablecoins like USDC.

The reason is quite clear: it’s a pure competitive issue. Smaller banks rely on attracting deposits with low interest rates. If crypto exchanges start offering higher yields on stablecoin balances, it directly erodes their profitability. Plain and simple.

The executive made it very explicit: banks pushed hard to prevent anything that looks like yield or rewards paid by any exchange on the platform. Especially small banks that don’t want to raise their interest rates.

But the crypto community isn’t quietly accepting this. Many argue that banning yield on static USDC balances is anti-competitive and harms consumers. Critics say the CLARITY Act may be heavily tilted to favor big banking institutions, keeping traditional finance in control of stablecoin liquidity routes.

There’s also frustration because security is being used as an excuse, even though crypto systems are transparent and fully insured. It doesn’t make much sense.

The good thing is that things are moving. Senator Cynthia Lummis is pushing for the approval of the CLARITY Act, arguing that the US needs to bring back the digital assets industry with clear rules. Senator Bill Hagerty confirmed that the bill will be sent to the Senate Banking Committee soon.

After weeks of discussions, Congress has returned, and negotiations have officially resumed. Many people on Crypto Twitter are suggesting that the bill is basically ready and could move forward with support from both sides. There’s even speculation that it could be positioned as part of a national security effort, which could speed things up.

It’s a crucial moment for the crypto space. How this gets resolved could define much of what’s to come in terms of regulation and yield opportunities in cryptocurrencies in the US.