Latest developments: Late. Angela Alsobrooks said she will not support the Clarity Act on the Senate floor unless negotiators reach an agreement on ethics provisions and other outstanding issues.
- Alsobrooks said ethical concerns remain a major issue, along with illegal funding provisions and work still needed in the Agriculture Committee.
- She characterized her committee vote advancing the bill as support for continued bipartisan negotiations, not unconditional support for final passage.
- “We’re almost there, but not quite there yet,” Alsobrooks said of the negotiations.
- Alsobrooks joined Rebecca Rettig and Renato Mariotti on CoinDesk’s The Policy Protocol.
The compromise: Alsobrooks defended the stablecoin dividend language that drew criticism from JPMorgan Chase CEO Jamie Dimon and parts of the banking industry.
- She said she was among the first senators to raise concerns that allowing interest-bearing stablecoins could trigger deposit flight from community banks.
- According to Alsobrooks, dealers spent about nine months crafting language that prevents crypto companies from paying returns solely on stablecoin balances and prevents companies from offering products that mimic bank accounts without bank-like protections.
- She argued that the final compromise balances industry innovation with protection of consumers and banking sectors, although 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.
- Noting that tens of thousands of Americans already own cryptocurrency, she said lawmakers have a responsibility to establish consumer protections.
- The senator argued that digital assets represent a financial opportunity that many younger Americans believe they need as traditional paths to wealth become less attainable.
- She said the goal is to ensure the United States remains a leader in digital asset innovation while protecting consumers from harm.
Reading between the lines: Alsobrooks suggested that democratic skepticism about crypto legislation is driven less by the technology itself than by concerns about corruption, ethics and fraud.
- She pointed to concerns involving President Trump’s business interests and broader questions of ethics in the digital asset space.
- She said many lawmakers remain focused on preventing fraud and strengthening protections for consumers who have already suffered losses.
- Alsobrooks argued that staying engaged in negotiations is the best way to ensure voters have a voice in shaping the final rules.
What comes next: The senator outlined a short list of priorities needed to move the legislation across the finish line.
- Dealers must finalize ethical provisions acceptable to both parties.
- Lawmakers are still working through illegal finance language championed by Sen. Catherine Cortez Masto.
- The Agriculture Committee must also reach an agreement between two parties before final consideration in the Senate can proceed.
