ECB’s Lagarde flags euro-denominated stablecoins as financial stability risk, diverging from Bundesbank stance

Senate Banking Committee scheduled markup hearing for the Digital Asset Market Clarity Act on May 14, moving the stalled crypto market structure bill forward. A compromise on stablecoin yield provisions, brokered by Senators Tillis and Alsobrooks, resolved key blocking issues. Banking groups expressed concerns about the compromise text. The markup represents crucial progress toward potential legislation, though Senate-Agriculture Committee merger and ethics provisions remain outstanding.

U.S. banking groups oppose the proposed Clarity Act stablecoin framework, arguing it would enable regulatory evasion and undermine banking oversight. The industry contends that allowing non-bank entities to issue stablecoins without stringent safeguards could create systemic risks. The debate highlights ongoing tensions between crypto innovation and financial stability concerns as lawmakers push for clearer digital asset regulations.

Bitcoin holders are realizing significant profits amid a 20% rally since April, but CryptoQuant warns this remains a "bear market rally," not a structural bull shift. Daily profit-taking hit December highs, with the STH-SOPR indicator signaling continuous distribution. Current net profits of 20,000 BTC lag the 130,000–200,000 BTC range confirming bull markets, suggesting correction risk ahead despite supportive perpetual futures demand.