White House and Congress reportedly near agreement on CLARITY Act stablecoin provisions
Reports indicate the emerging agreement addresses yield-bearing stablecoins and interest generation, key concerns raised by traditional banking institutions.
Reports are emerging that suggest a preliminary agreement has been reached between White House officials and members of Congress regarding stablecoin yield provisions, which could potentially advance the CLARITY crypto market structure legislation.
According to a Politico report published on Friday, Republican Senator Thom Tillis alongside Democratic Senator Angela Alsobrooks, who both serve on the Senate Committee on Banking, Housing, and Urban Affairs, have successfully negotiated an "agreement in principle."
"I think what it will do is to allow us to protect innovation, but also gives us the opportunity to prevent widespread deposit flight," Alsobrooks said, adding that the deal prohibits stablecoin yield on "passive balances."
The precise terms and conditions of the potential agreement remain undisclosed at this time, with Senator Tillis emphasizing that the cryptocurrency sector needs to review and approve the arrangement before any final decisions are made.
Cointelegraph contacted the White House seeking additional information regarding the potential agreement but had not received any response at the time this story was published.
During her remarks at Wednesday's DC Blockchain Summit, Wyoming Senator Cynthia Lummis, who stands as one of Capitol Hill's most vocal proponents for digital asset regulation, stated, "We are so close" to passing a comprehensive crypto regulatory framework.
A representative speaking on behalf of Senator Lummis informed Cointelegraph on Wednesday that an agreement is anticipated to come together in "the next few days," and that Senator Lummis is currently working to finalize ethics language in the bill.
The Digital Asset Market Clarity Act of 2025, also referred to as the CLARITY Act, represents a significant piece of cryptocurrency regulation and had been broadly expected to achieve passage smoothly following the successful enactment of the GENIUS stablecoin framework into law.
Nevertheless, the legislation encountered obstacles in January when prominent industry participants, such as cryptocurrency exchange Coinbase, raised objections, including questions about whether stablecoin issuers would be permitted to distribute yield to token holders.
Banking sector expresses concerns about market share losses and customer deposit migration
Traditional banking institutions have expressed opposition to yield-generating stablecoins, pointing to worries about the migration of customer deposits away from banks, which currently offer yields significantly below 1%, along with concerns about losing competitive market position.
Patrick Witt, the executive director of the White House Council of Advisors for Digital Assets, said that these concerns are overblown.
According to Witt, a substantial influx of new capital is expected to flow into the United States banking sector should dollar-backed yield-bearing stablecoins receive legal authorization and regulatory oversight.