Reports indicate a tentative agreement has been reached between the White House and key U.S. senators regarding stablecoin yield, potentially unblocking the stalled CLARITY crypto market structure bill. The deal, reportedly struck by Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks, would prohibit yield on “passive” stablecoin balances. Finalization awaits industry vetting, with advocates suggesting a comprehensive regulatory framework is imminent.
A reported deal between the White House and lawmakers on stablecoin yield could advance the major CLARITY Act crypto legislation. Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks reached an “agreement in principle,” according to a Friday report.
Senator Alsobrooks stated the deal aims to protect innovation while preventing deposit flight. “I think what it will do is to allow us to protect innovation, but also gives us the opportunity to prevent widespread deposit flight,” she said, adding it prohibits yield on “passive balances.” Specific details remain undisclosed, and Senator Tillis said the crypto industry must review the agreement before finalization.
The CLARITY Act stalled in January after industry concerns, including over stablecoin issuers sharing yield. At the DC Blockchain Summit, Wyoming Senator Cynthia Lummis said, “We are so close” to passing a framework. A spokesperson for Senator Lummis said a deal is expected soon, with work ongoing on the bill’s ethics language.
Banks oppose yield-bearing stablecoins, fearing deposit flight and eroded market share. Patrick Witt of the White House Council of Advisors for Digital Assets said these concerns are overblown. He argued that legalizing regulated yield-bearing stablecoins would likely bring fresh capital into the U.S. banking industry.
