A new draft of the Clarity Act, led by U.S. Senator Thom Tillis (Republican from South Carolina) and Senator Angela Alsobrooks (Democrat from Maryland), is expected to be released this week. The proposed legislation aims to clarify whether holders of stablecoins, such as Tether (USDT) and USD Coin (USDC), can earn interest on their holdings. This comes amid ongoing disputes between traditional banking institutions and cryptocurrency companies regarding the implications of stablecoin yields. Current regulations, including the GENIUS Act, prohibit stablecoin issuers from directly paying interest, creating uncertainty for third-party platforms that may offer yield products. Banks argue that allowing yields could divert funds from traditional deposits, posing structural risks. In contrast, crypto firms argue that restrictions hinder innovation and limit new business models. Senator Tillis has indicated that negotiations are ongoing and has proposed a meeting to facilitate discussions among banking and crypto stakeholders. Meanwhile, recent data shows that stablecoin activity on the Ethereum network has dropped significantly, suggesting a slowdown in market movements, although analysts believe this could change with rising Bitcoin prices and increased volatility.