An interim stablecoin yield agreement could help restart progress on the CLARITY Act in Washington. Reports said that White House officials and US lawmakers are working on provisions that could address one of the main arguments that weakened the crypto market structure bill earlier this year.
Summary
- A reported agreement in principle could help restart stalled progress on the CLARITY Act.
- Legislators are weighing limits on stablecoins to address bank deposit flight issues carefully.
- Crypto industry review is pending before any stablecoin yield compromise becomes final rule.
Discussions center on whether stablecoin issuers should be allowed to offer a yield to holders. That issue has divided crypto firms and banks, with both sides watching closely as lawmakers try to move the bill forward.
A Politico report said that Senator Thom Tillis and Senator Angela Alsobrooks reached an “agreement in principle” regarding the stablecoin yield. Both senators sit on the Senate Banking Committee, which has played a key role in digital asset policy discussions.
Alsobrooks said the agreement will help “protect new ones” while also limiting the risk of a flight of deposits in the banking system. He added that the agreement would prevent the stablecoin yield on “useless balances,” pointing to a narrow path for how the yield would work under future rules.
The CLARITY Act still stands on important questions
The Digital Asset Market Transparency Act of 2025 was expected to move forward after the GENIUS stablecoin framework became law. That changed when controversy grew over whether stablecoin issuers could share the proceeds directly with token holders.
Industry groups and lawmakers have taken this issue to heart in the bill. Senator Tillis said the crypto industry still needs to review the emerging agreement before anything is finalized, meaning the text could change before official action.
Speaking at the DC Blockchain Summit, Senator Cynthia Lummis said, “We are very close” to convey the broad framework of crypto.” A Lummis spokesman also said an agreement could be reached within days as work continues on the bill’s behavioral language.
Those comments suggest that lawmakers are still trying to package stablecoin policy and market structure rules into a broader crypto framework. The timing has not been confirmed, but recent discussions indicate that negotiations are on again after the January slump.
Banks and crypto firms remain separate
Banks oppose yield-generating stablecoins, saying they can take deposits away from traditional accounts. That concern has been one of the strongest arguments against allowing broader production features in stablecoin products.
The White House is also hearing the opposite case. Patrick Witt, executive director of the White House Council of Advisors for Digital Assets, said those concerns are overblown and said regulated stablecoins that generate yield could bring new money to the US banking system.
