Senate Banking Committee chairman Tim Scott said on Tuesday that he believes that there is a chance that a compromise on a stablecoin yield payments provision could be reached this week.
This provision has been holding up the crypto market structure bill in the Senate for months.
"It feels like the big momentum is finally on our side," he said. "I believe that this week we will have the first proposal in my hands to take a look at."
The CLARITY Act would at last clarify the usage of cryptocurrencies in the US. It passed the House of Reps with bipartisan support in July. However, the bill was blocked in the Senate as banks lobbied lawmakers to add language that would bar crypto exchanges from paying interest on stablecoin deposits made by customers.
The banking groups claim that stablecoin interest payments are a loophole in the GENIUS Act, which bars stablecoin issuers from paying yield on stablecoins. They also claim this could have serious implications for the stability of the US banking system.
Meanwhile, crypto exchanges claim that yield payments are one of the best ways to lure customers and accuse the banks of being anti-competitive.
Why the Passage Could Spark the Next Bull Run
Bitcoin and the crypto market as a whole have been struggling with momentum since the October crash. BTC has lost about 50% in its value after hitting a new all-time high of $120,000. However, there is a new conviction that it may have started its recovery as institutional activity returned.
According to SoSoValue data, U.S spot Bitcoin ETFs recorded another day of net inflows on Tuesday, marking seven consecutive days of inflows. This is the longest consecutive inflow cycle since October 2025.
The funds have now recorded inflows of about $1.17 billion over the last seven trading sessions. The inflows are on track for a fourth consecutive week of inflows.
Some experts believe this could just be the beginning of the long bull run that could generate significant momentum in the crypto market by the second half of the year.
For instance, last month, JP Morgan (JPM) said the market could get a boost in the second half of the year if the lawmakers in the US approve the market legislation by mid-year, despite the poor market sentiment.
Santiment also shared in a Tuesday post that the crypto market bill progress plays a significant role on how the market could potentially move.
The platform also said this gives institutions more confidence to pour in more capital, signaling bullish momentum.
"If confirmed, there is a wide expectation for major bullish momentum to come due to higher comfortability from institutionals to invest in cryptocurrencies due to the increased transparency and safety," Santiment said.
In summary, the next couple of days could determine whether the crypto market maintains its upward trajectory or retraces to previous lows.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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