U.S. ‘Clarity Act’ Markup Delayed as Stablecoin Interest Faces Pushback [Crypto Briefing]

[Financial News] The United States Senate has postponed until the end of this month the markup session for the “Digital Asset Market Clarity Act of 2025,” a bill that would establish a regulatory framework for the virtual asset market. The review had originally been scheduled for the 15th (local time), but legislative momentum has weakened as disagreements between the virtual asset industry and the financial sector have persisted over a provision that would prohibit the payment of interest and returns for simply holding stablecoins. The direction of this bill is expected to influence domestic policymaking in South Korea, where debate continues over the eligibility requirements for stablecoin issuers. According to foreign media and the virtual asset industry on the 15th, the latest draft of the Digital Asset Market Clarity Act of 2025 released by the United States Senate creates a pathway for certain tokens (virtual assets) to be reclassified as “digital commodities” under the jurisdiction of the Commodity Futures Trading Commission (CFTC) if they are deemed sufficiently decentralized and thus recognized as operating on a “mature blockchain.” Once an issuer submits a certification, the token would automatically obtain commodity status unless the United States Securities and Exchange Commission (SEC) provides a clear reason for rejection within 90 days, a mechanism that many say significantly reduces regulatory uncertainty for the industry.
However, the provision restricting the payment of returns related to stablecoins has triggered strong backlash from the industry. The bill, as drafted, in principle prohibits the payment of interest or other returns solely for holding stablecoins. It makes an exception only for “specific activity-based rewards,” such as using stablecoins for payments or participating in staking (deposit-based rewards). While the Senate aims to firmly establish stablecoins as a means of payment, issuing companies are concerned that their revenue models could be undermined.
Brian Armstrong, chief executive officer (CEO) of Coinbase, a leading player in the virtual asset industry, stated on his official social media accounts that he may withdraw support for the Digital Asset Market Clarity Act of 2025 due to its curbs on stablecoin rewards and restrictions on access to Decentralized Finance (DeFi). For Coinbase, a key distribution partner for USD Coin (USDC) issued by Circle, a legal ban on directly paying interest would raise concerns that funds could flow en masse into offshore stablecoins or DeFi platforms.
The traditional banking sector, by contrast, is taking a hard line. Jeremy Barnum, chief financial officer (CFO) of JPMorgan Chase & Co., said during a recent earnings call that it is clearly dangerous for stablecoins—an unregulated parallel financial system that performs functions similar to those of banks without being subject to prudential regulation—to also guarantee returns. He warned that this could trigger a massive outflow of deposits from traditional banks, effectively a bank run, and pose a threat to the entire financial system.
As a result, the legislative timetable has come under strain. With the Senate postponing the markup session, the industry’s hope that the bill would receive a presidential signature within the first half of this year has become uncertain. If bipartisan consensus is not reached before the United States midterm elections in November, some observers warn that the bill itself could be left in limbo for an extended period.
Observers also expect these tensions in the United States to affect the framework for regulating stablecoins now under discussion by South Korea’s financial authorities and National Assembly. Domestically, debate continues over whether banks should be required to hold a majority of both equity and voting rights (50% plus one share) in issuing entities, or whether to allow broader participation by Financial Technology (FinTech) firms. One industry official said that if the United States ultimately decides to strictly limit the payment of returns on stablecoins, regulatory proposals in South Korea that restrict issuers’ revenue models in the name of ensuring payment stability could gain traction.

elikim@fnnews.com Kim Mi-hee Reporter