There is some relief that the stalled crypto market structure bill, the CLARITY Act, may soon gain momentum.
On March 20, President Donald Trump’s chief crypto advisor Patrick Witt confirmed that the Senate and the White House had reached an ‘agreement in principle’ to advance the bill.
Witt hailed the agreement as a “major milestone” in getting the bill implemented and credited Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) for brokering the deal. HE added,
More work is needed to close these and other unresolved issues, but this is an important milestone on the path to passage of the CLARITY Act.
With bipartisan support now secured, the ball will be in the banking industry’s court. At the time of this writing, neither the Bank Policy Institute (BPI) nor the American Bankers Association (ABA) had yet released a statement regarding the agreement.
So, what’s the deal about?
Details of the agreement
The Digital Market Clarity Act (CLARITY Act) was passed in Parliament last July. However, it has stalled in the Senate since January 2026 due to the stablecoin yield issue.
The banking industry was concerned that the stablecoin reward loophole in the GENIUS Act could trigger a deposit exodus. In response, he opposed the CLARITY Act unless the problem was fixed. Three negotiations took place between the banking industry and the crypto industry to finalize the yield agreement. But not all of them could solve the problem.
The latest stablecoin yield settlement now aims to block rewards on passive stablecoin balances. This would address banks’ deposit run concerns, as payment stablecoins will not operate like an interest-bearing savings account.
Activity-based rewards will also be allowed for transfers, remittances, platform services and others. This will ensure that innovation is not stifled, negotiators say. It is unclear whether banks will accept this compromise.
However, part of the crypto industry was not happy about this. Some leaders, such as Robinhood CEO Vlad Tenev, in the name for flexibility in what drives the return.
It is important that Congress and regulators remain flexible in determining activities that allow the payment of interest or returns.
passageway
If banks support the compromise, the Senate Banking Committee will likely make another formal raise to advance the bill. This will probably happen after the Easter holidays.
However, it remains unclear whether the bill will be brought to the Senate for a vote and then reconciled by the House before the US elections.
Accordingly Kristin Smith According to a report by the Solana Policy Institute, the bill must advance by the August recess.
Final Summary
- The Senate and the White House have reached a partisan agreement on a stablecoin yield compromise that could reignite momentum for the CLARITY Act.
- It is not yet known whether the banking industry will support the stablecoin yield agreement
