French Hill, chair of the U.S. House Financial Services Committee, said the CLARITY Act could help solve issues left unresolved by the GENIUS Act.
In a recent interview with Fox Business, Hill explained that the House passed the CLARITY Act with bipartisan support, including 78 Democratic votes. The goal is to set clear rules for stablecoin issuers, whether they are banks or nonbank companies, and ensure all players are treated equally.
Hill said lawmakers from both parties agreed that stablecoins should not pay yield, a key point in the ongoing GENIUS Act discussions. Some other questions, like rewards or incentives tied to stablecoins, may be handled through regulatory rulemaking rather than new laws. Hill suggested these issues could be best addressed under the GENIUS Act.
He also noted that major banks are concerned that crypto companies could gain an unfair advantage if they face lighter regulation. Lawmakers want to avoid an imbalance between traditional banks and nonbank stablecoin issuers. Hill said:
“All issuers should be treated the same way. You don’t want an imbalance between people using a dollar-backed stablecoin on their platform.”
The CLARITY Act is part of broader efforts in Washington to define rules for stablecoins and other digital assets, ensuring fair competition while maintaining proper oversight in U.S. financial markets.
