US Digital Asset Market Clarity Act Stalls in Senate Over Stablecoin Interest Rules

The Digital Asset Market Clarity Act remains stalled in the Senate after passing the House 294-134 in July 2025, with disputes continuing over whether stablecoin issuers or crypto platforms may pay interest on balances. The bill would establish which digital assets fall under SEC oversight as "Investment Contract Assets" and which qualify as "Digital Commodities" under CFTC jurisdiction, while adding protections for DeFi developers and peer-to-peer activities. Progress has been delayed by the American Bankers Association's push for a strict ban on interest-bearing stablecoins, its March 5, 2026 rejection of a White House compromise allowing only transaction-based rewards, and competing Senate committee drafts. The debate occurs alongside the GENIUS Act, signed July 18, 2025, which already bars stablecoin issuers from paying interest directly to users, an OCC proposal released February 25, 2026, and pressure from both the crypto industry and banking lobby ahead of a mid-2026 window analysts view as critical for passage.