Latest developments: Sen. Angela Alsobrooks said she would not support the Clarity Act in the Senate unless negotiators reach agreement on ethics provisions and other outstanding issues.
- Alsobrooks said ethical concerns remain a major sticking point, alongside provisions on illicit financing and work still needed in the agriculture committee.
- She characterized her committee vote to advance the bill as support for continued bipartisan negotiations, not unconditional support for final passage.
- “We’re almost there, but not quite yet,” Alsobrooks said of the negotiations.
- Alsobrooks joined Rebecca Rettig and Renato Mariotti on CoinDesk’s The Policy Protocol.
The compromise: Alsobrooks defended the stable yield language that has drawn criticism from JPMorgan Chase CEO Jamie Dimon and parts of the banking industry.
- She said she was among the first senators to express concerns that allowing interest-bearing stablecoins could trigger a flight of community bank deposits.
- According to Alsobrooks, negotiators spent about nine months crafting language that prohibits crypto companies from paying a yield only on stablecoin balances and prevents companies from offering products that mimic bank accounts without bank-like protections.
- She argued that the final compromise balances industrial innovation with protections for consumers and the banking sector, even if neither side is fully satisfied.
Why it’s important: Alsobrooks framed crypto regulation as a response to growing consumer adoption rather than a speculative future policy debate.
- She noted that tens of millions of Americans already own cryptocurrencies and said lawmakers have a responsibility to establish protections for consumers.
- The senator argued that digital assets represent an economic opportunity that many young Americans believe they need as traditional paths to wealth become less accessible.
- She said the goal was to ensure the United States remains a leader in digital asset innovation while protecting consumers from harm.
Read between the lines: Alsobrooks suggested that Democrats’ skepticism toward crypto legislation is driven less by the technology itself and more by concerns about corruption, ethics and fraud.
- She highlighted concerns related to President Trump’s business interests and broader questions about ethics in the digital assets space.
- She said many lawmakers remain focused on preventing scams and strengthening protections for consumers who have already suffered losses.
- Alsobrooks argued that remaining engaged in negotiations is the best way to ensure voters have a say in shaping the final rules.
What comes next: The senator laid out a short list of priorities needed to move the bill through to the end.
- Negotiators must finalize ethical arrangements acceptable to both parties.
- Lawmakers are still working on illicit financing language championed by Sen. Catherine Cortez Masto.
- The Agriculture Committee must also reach bipartisan agreement before final Senate consideration can take place.
