US crypto law stuck on stablecoin disputes - CoinSpot

Although the White House has already held three meetings trying to find a solution to the issue of stablecoin yield in the Senate’s crypto market structure bill, there are still no signs of a compromise.

Since July, senators have been working on a comprehensive law on the structure of the digital asset market. However, according to some industry representatives in Washington, the process may effectively be put on pause due to a political deadlock.

After the House of Representatives passed the *CLARITY Act *last summer and sent the document to the Senate, progress slowed. Lawmakers faced one of the longest government shutdowns in history, disagreements between parties over ethics issues, and disputes over stablecoin yields. The upcoming midterm elections in November add another risk factor that could further delay consideration of the initiative.

Eight months before the election, only one version of the bill, concerning commodity market regulation, has passed through the Senate Agriculture Committee. Meanwhile, the Senate Banking Committee has not moved forward on securities regulation, canceling amendment discussions in January.

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Rebecca Liao, co-founder and CEO *of AI protocol *Saga and former advisor to Joe Biden *during his 2020 presidential campaign, said the bill is effectively frozen. She also questioned the optimistic forecast of *Ohio Senator Bernie Moreno, who said in February that Congress could pass the law “hopefully by April.” According to her, the initiative simply lacks sufficient momentum.

Liao noted that when the crypto market was growing rapidly and traditional financial institutions were actively developing strategies to enter digital assets, the pressure on regulators and lawmakers was much stronger.

Now the market has cooled noticeably. Even within the crypto community, there are increasing doubts about whether the industry’s ties to the Trump family have been beneficial. Against this backdrop, previous enthusiasm has noticeably declined, she noted.

According to her, in the current Congress, it is generally difficult to advance any legislative initiatives. And if it is a topic that remains fairly abstract for most Americans, the process becomes even more difficult. An additional factor is that the country has entered an election year.

Stablecoin Disputes Intensify, Trump Administration at the Center of the Debate

Another source of tension in the Senate remains the issue of stablecoin rewards. Reportedly, the White House has already held three meetings with representatives of the Trump administration, as well as the crypto and banking sectors. The possibility of including provisions in the law allowing stablecoin holders to receive yields through third-party platforms is being discussed. Some in the banking community believe that such rules could undermine the position of traditional financial institutions.

The head of the lobbying organization Digital Chamber Cody Carbone *shared sentiments after the *World Liberty Financial forum, where Senator Moreno outlined his timeline for advancing the bill. According to him, some participants, including Coinbase CEO Brian Armstrong, showed noticeable optimism about finding a compromise. However, beyond the stated goal of passing the law by April, there was little specificity.

Meanwhile, the 2026 election cycle has already started in some states. Party primaries are scheduled for Tuesday in Arkansas, North Carolina, and Texas ahead of the November elections. In August, the Senate will likely recess for about a month to work in the states and will return to sessions just two months before the election. This further narrows the time window for passing a major crypto market structure law.