Lately, there has been ongoing attention to the progress of U.S. cryptocurrency regulation, and there is finally some new movement in the negotiations of the "CLARITY Act." According to insiders, after months of deadlock over the issue of stablecoin yields, all parties have finally agreed on a compromise plan, but honestly, subsequent variables could be even greater.

First, regarding stablecoin yields. The banking industry has been very tense, worried that allowing stablecoins to earn interest like bank deposits could trigger a massive outflow of funds. The crypto industry, on the other hand, argues that banning yield mechanisms is equivalent to stifling innovation. After three months of tough negotiations, the current plan roughly is: prohibit passive income solely from holding stablecoins, but preserve legitimate rewards related to actual transactions or blockchain technology. This balance seems acceptable to both sides, but insiders also say that if there are major changes, it could lead to a deadlock again.

More concerning are the next two issues. One is anti-money laundering measures; some senators worry that provisions regarding non-custodial developers could weaken law enforcement capabilities. The other is a sensitive matter—conflicts of political interests. Trump and his family’s business ventures in crypto have already sparked controversy, including DeFi projects, mining companies, and even meme coins like TRUMP and MELANIA. It’s estimated that these businesses have already generated about $1.4 billion in revenue for the Trump family, naturally raising questions among Congress members.

Time pressure is also increasing. Thom Tillis said hearings might not be held until April, and Bernie Moreno bluntly stated that if the bill isn’t passed before May, there’s no chance for it in the foreseeable future. Despite frequent political warnings, market sentiment remains relatively stable. Senate staffers revealed that although progress might be delayed by several weeks, it won’t be a catastrophic blow to the final outcome.

In my opinion, the compromise on stablecoin yields is progress, but political risks are the real variables. If conflicts of interest cannot be properly managed, the entire bill’s advancement could still face setbacks. The deadline at the end of this month will likely remain very tight.