Headline: Tentative Stablecoin Yield Deal Could Reignite CLARITY Act Progress in Washington
A tentative agreement on whether stablecoin issuers can offer yield to holders may unlock stalled negotiations over the CLARITY Act, potentially restarting work on a broader crypto market-structure package in Congress.
What’s happening
- Senators Thom Tillis and Angela Alsobrooks — both members of the Senate Banking Committee — have reportedly reached an “agreement in principle” on stablecoin yield, according to Politico. That committee has been central to shaping recent digital-asset policy.
- The emerging deal would aim to protect innovation while limiting the risk of deposit flight from the traditional banking system. Alsobrooks said it would block stablecoin yield on “passive balances,” suggesting a narrower, more targeted path for allowable yield mechanisms under future rules.
- Senator Tillis cautioned that the crypto industry still needs to review the terms, so the agreement could change before any formal legislative text is finalized.
Why this matters
The Digital Asset Market Clarity Act of 2025 — sometimes referred to as the CLARITY Act — was poised to move after the GENIUS stablecoin framework became law. Progress stalled in January when debate intensified over whether stablecoin issuers should be permitted to share yield directly with token holders. That single issue split industry stakeholders and banks and became a central sticking point for lawmakers.
Where lawmakers stand
- Senator Cynthia Lummis, speaking at the DC Blockchain Summit, said, “We are so close” to passing a broader crypto framework. Her office added a deal could materialize within days as negotiators finalize ethics language tied to the bill.
- Those comments indicate negotiators are trying to fold stablecoin policy and wider market-structure rules into a single package, but timing remains uncertain.
Industry and banking reactions
- Banks have strongly opposed yield-bearing stablecoins, warning that such products could siphon deposits from traditional accounts and destabilize the banking system.
- The White House has heard the contrasting view as well: Patrick Witt, executive director of the White House Council of Advisors for Digital Assets, has argued concerns about yield-bearing stablecoins are overstated and suggested regulated versions could bring new capital into the U.S. banking system.
Next steps
Negotiations are active again after the January slowdown. With senators and White House advisors involved and industry review still outstanding, the agreement’s details and the bill’s final language could shift before any formal vote — but momentum appears to be returning to the CLARITY Act effort.
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