Late Wednesday, the Senate Banking Committee postponed its January 15 meeting, where it had planned to consider H.R. 3633, the Digital Asset Market Clarity Act of 2025. While last year’s GENIUS Act established a framework for stablecoins – covering reserves, licensing, and consumer protections – the new market?structure bill would define digital asset categories, clarify SEC/CFTC jurisdiction, and set trading rules.

A major concern for the banking industry is that stablecoin issuers have been evading the GENIUS Act’s ban on offering yields. The issuers have been channeling income from invested reserves to exchanges and wallet providers, who then pay rewards to stablecoin purchasers. What was meant to be a payments tool has been distorted into a yield?bearing product that takes deposits out of the banking sector that would otherwise be used to support loans in the community. Negotiations have also focused on proposed ethics rules to prevent senior government officials from personally profiting from the crypto industry.

Senators on the committee like Senator Thom Tillis have been working diligently to navigate and understand the issues and pitfalls. We appreciate those of you who have answered our Action Alert and submitted letters. Please continue to do so.

Although no new markup date on the legislation has been announced, Chairman Tim Scott (R-SC) has said stakeholders continue to work on the bill. We will continue to advocate with our national trade association partners at ABA and ICBA on this critically important issue.

Author: sdbrownlow

Student of Design