Stablecoin yield negotiations had stalled the Digital Asset Market Clarity Act in the Senate Banking Committee for months. Now, a deal may have broken the deadlock. Senators Thom Tillis and Angela Alsobrooks confirmed they reached an agreement in principle with the White House on Friday, according to Politico.
The central dispute was whether crypto exchanges could pay yield to stablecoin holders. Banks pushed back hard. Their argument: stablecoin rewards programs could pull deposits out of traditional bank accounts, threatening lending.
Banks, Crypto, and a Fragile Compromise
Alsobrooks confirmed the new language would bar yield payments on passive stablecoin balances. That detail, while slim, signals where the deal leans. But full legislative text had not been shared with industry stakeholders as of Friday, a person familiar with the matter told CoinDesk.
Tillis acknowledged the agreement still needs vetting. He said he feels the talks are “in a good place” but plans to run it by industry before anything is final. Alsobrooks framed it as a step that “protects innovation” while also guarding against “widespread deposit flight.”
Connor Lounsbury, Alsobrooks’ communications director, said the senators plan to bring in industry stakeholders for feedback. He was direct about what remains: ethics provisions, illicit finance concerns, and other outstanding issues still need resolution before the bill can secure broad bipartisan support in the Banking Committee.
White House Steps In
Patrick Witt, a senior White House crypto policy adviser, weighed in on X following the announcement. According to CryptosR_Us on X, the deal likely limits yield on passive balances while still allowing activity-based rewards, calling it “the biggest blocker” now cleared.
“More work to be done to close out this and other outstanding issues, but this is a major milestone toward passing the CLARITY Act,” Witt wrote on X.
The White House had been reviewing updated legislative text as recently as Thursday. Officials did not respond to comment requests before the Friday development became public.
Senate Hearing Could Come Next Month
Senator Cynthia Lummis, who leads the Banking Committee’s crypto subcommittee, said earlier this week she expects a hearing in the latter half of April. She posted an image on X Friday of a yield sign, a nod to the compromise.
If the bill clears the Banking Committee, it still needs to be merged with a version that passed the Senate Agriculture Committee. Senate floor time is tight, with competing priorities including a Republican voter-ID bill and debates over the war in Iran.
DeFi provisions remain unresolved. Some Democrats have flagged concerns about illicit finance in that part of the bill, and that fight hasn’t been settled.
Advocates have been pushing for a May resolution of the Clarity Act. Whether the stablecoin yield deal holds, and whether the remaining gaps close fast enough, will determine if that timeline sticks.
