TD Cowen and Brad Garlinghouse say the CLARITY Act faces a critical near-term window as banks dispute whether stablecoin reward limits adequately prevent crypto yield from resembling deposit interest.
TD Cowen said banks and crypto interests still have no compromise on the CLARITY Act, a U.S. crypto market-structure bill, while Ripple Chief Executive Brad Garlinghouse said the next two weeks are critical for its chances of advancing. The dispute centers on whether draft language clearly bans bank-like interest on payment stablecoins while still allowing incentives that are not economically comparable to deposit interest. Five banking groups jointly rejected a compromise proposal as insufficient, and earlier reporting identified the American Bankers Association, the Bank Policy Institute, and the Consumer Bankers Association among those seeking stronger protections. Garlinghouse, speaking at CoinDesk’s Consensus Miami event, said the bill is imperfect but preferable to regulatory uncertainty and that failure to move soon through the Senate Banking Committee would sharply reduce its prospects. Reporting also said some banks worry the language is too narrow and could let crypto firms restructure yield-like rewards, while others appear more comfortable with the compromise.