The U.S. Senate and White House have reached an agreement in principle on a key stablecoin issue, potentially reviving the stalled CLARITY Act. Patrick Witt, an advisor, called it a major milestone. The deal, brokered by Senators Thom Tillis and Angela Alsobrooks, must now gain banking industry approval to move forward.
An agreement between the Senate and White House may unblock the stalled crypto market structure bill. Patrick Witt, a chief crypto advisor, confirmed the “agreement in principle” to advance the CLARITY Act.
Witt hailed the deal as a “major milestone” and credited Senators Thom Tillis and Angela Alsobrooks for brokering it. He added, “More work to be done to close out this and other outstanding issues, but this is a major milestone toward passing the CLARITY Act.” The bill now awaits a response from banking groups like the Bank Policy Institute and American Bankers Association.
The legislation stalled over a dispute about stablecoin rewards. Banks worried a loophole could trigger deposit flight, leading them to oppose the bill.
The new compromise seeks to block rewards on passive stablecoin balances to address bank concerns. It would, however, allow activity-based rewards for transfers and platform utility.
Some crypto industry figures have called for more flexibility. Robinhood CEO Vlad Tenev called for regulators to remain flexible on what activities can yield interest. The bill’s path forward remains dependent on banking sector support.
If banks back the deal, the Senate Banking Committee could hold a markup after the Easter recess. Kristin Smith of the Solana Policy Institute stated the bill has until the August recess to advance. Whether it reaches a full vote before elections is still unclear.
