Progress on the CLARITY Act may be restarting, as a tentative agreement on stablecoin yield seems to have been reached between key lawmakers.
Key Takeaways:
Tentative Stablecoin Yield Deal:
- Senators Thom Tillis and Angela Alsobrooks, both on the Senate Banking Committee, reportedly reached an “agreement in principle” on stablecoin yield.
- The deal would block yield on passive balances while allowing activity-based incentives, aiming to protect banks from deposit flight while still supporting crypto innovation.
- The agreement is not yet final; the crypto industry must review it before it can become law.
CLARITY Act Status:
- The Digital Asset Market Clarity Act of 2025 stalled earlier due to disputes over stablecoin yield, after the GENIUS Act laid a framework for stablecoins.
- Senator Cynthia Lummis indicated that progress is close, with negotiations continuing on ethics language and broader crypto market rules.
Bank vs Crypto Divide:
- Banks argue yield-bearing stablecoins could pull deposits away from traditional accounts.
- The White House, represented by Patrick Witt, counters that regulated yield-bearing stablecoins could bring new capital into the banking system.
Bottom Line:
If this tentative agreement holds, it may unlock the stalled CLARITY Act, potentially paving the way for a comprehensive U.S. crypto regulatory framework that balances innovation with financial stability.
The next steps will involve industry review and final legislative negotiations, with timing still uncertain but momentum appearing to return after the January slowdown.
