In a universe that could have been written by a bored librarian with a fondness for calculators, Chainlink’s Adam Minehardt explained why the CLARITY Act is taking the scenic route to legislation. The news, as always, is that traditional institutions have pushed “extremely hard” to block any crypto feature that offers yield, especially on stablecoins like USDC.
“Definitely, the banks have pushed extremely hard to prevent anything that looks like yield or rewards from being paid by any exchange on platform,” he said.
He added, “It very much is a competitive issue for them, particularly for smaller banks that really chase deposits with interest rates and frankly don’t want to pay higher rates. It really would undercut their profitability.”
Banks vs Crypto: The Yield Battle
Minehardt explains this as a purely competitive skirmish. Smaller banks, which survive on attracting deposits with the tiniest hint of interest, are reluctant to raise rates. Should crypto exchanges start tossing around higher yields on stablecoin balances, that would, in their view, undermine the profitability of the old-fashioned money-counter industry. If you can earn more from your digital coins than from a stubborn jar of pennies, the banks will notice-mostly because their quarterly reports start to resemble origami.
- First, banning yield on static USDC balances is “anti-competitive,” he argues, insisting it curbs consumer benefits and slows innovation-as if innovation had a sense of humour at all.
- Hence, in his view, banks have driven negotiations toward what many in the industry see as an “unreasonable endpoint.”
Critics Say It Favors Big Banks
The pushback doesn’t stop there. Critics across the crypto space argue the CLARITY Act leans a little too heavily toward financial institutions. Some claim it could block non-bank players from offering competitive yields, effectively keeping traditional finance in charge of the stablecoin rails and liquidity flows. There’s also a suspicion that “safety” is the justification, even though many crypto systems are transparent and collateralized to the teeth-some might say sturdily dental.
Moving with Clarity
The latest update shows the CLARITY Act gaining momentum as Senator Cynthia Lummis pushes for forward motion, wryly noting that the US should restore some sense of order to the digital asset universe. Senator Bill Hagerty confirms the Act heads to the Senate Banking Committee next week, which sounds like a wonderfully bureaucratic adventure with a dash of space opera.
After weeks of back-and-forth about market structure and stablecoin policies, Congress is back from its break, and talks have resumed with the enthusiasm of a pair of cats at a laser pointer convention.
On the top, Crypto Twitter hints that the bill is basically ready, suggesting it could move ahead with support from both sides. There’s also chatter that it might be tied to a broader national security push, which would help the plot move along faster-like a plot that knows it’s being watched by consultants in suits.
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2026-04-13 09:52