After months of deadlock, a compromise on stablecoin rewards has moved the U.S. Digital Asset Market CLARITY Act closer to passage. The deal permits activity-based rewards but bans passive interest, addressing a key conflict between banks and crypto firms. With a Senate committee review scheduled in April, industry executives warn that missing this window could delay the legislation until 2027.
A longstanding clash over stablecoin yield nearly derailed the Digital Asset Market CLARITY Act. Intensive negotiations between the White House and lawmakers culminated in a breakthrough agreement in principle this March.
Patrick Witt, the White House’s top crypto advisor, cited the deal as a major step forward and credited Senators Thom Tillis and Angela Alsobrooks for the compromise. The agreement bans passive rewards for holding stablecoins while permitting activity-based rewards earned through payments or platform usage.
Senator Cynthia Lummis stated negotiations are done, adding, “President Trump pledged to make America the digital asset capital of the world. The CLARITY Act is how we make that happen.” The legislative timeline is tight, with an important Senate review in April.
Nic Puckrin, CEO of Coin Bureau, stressed that if the bill does not pass the Senate Banking Committee by the end of April, it could be “dead” until 2027 as focus shifts to the 2026 midterm elections. He remains cautiously hopeful, stating, “Yesterday, the stablecoin yield deal happened… This isn’t done yet. But the path just opened.”
Market sentiment reflects the progress. On Polymarket, the odds of the CLARITY Act becoming law in 2026 jumped from 60% to 70% following the March 20th update. Passage this spring could significantly impact investment and regulatory clarity for the U.S. crypto sector.
