CLARITY Act Could Cement Dollar Stablecoins Globally — But Yield Rules May Hand Asia a Competitive Edge!

The U.S. Senate Banking Committee advanced the bipartisan Digital Asset Market CLARITY Act in a 15-9 vote, pushing comprehensive crypto market structure rules closer to a full Senate vote. HashKey Group senior researcher Tim Sun argues the legislation's reach extends well beyond U.S. borders — clearer rules would give traditional banks, asset managers, and sovereign wealth funds a stronger legal basis to hold crypto assets and use dollar-backed stablecoins in payments, settlement, and treasury operations across Asia.

The catch is yield. A key compromise in the current bill bars crypto firms from offering interest that mimics traditional bank deposits while preserving rewards tied to on-chain activity — but banking lobby groups, led by the American Bankers Association, are pushing for tighter restrictions. If Washington draws a hard line, Sun warns it could trigger regulatory arbitrage,…