Democratic Senator Angela Alsobrooks urged community bankers at the American Bankers Association Summit in Washington to accept imperfect terms on the CLARITY Act, warning that insistence on a flawless bill could derail progress. The Senate Banking Committee is considering scheduling a markup before the end of March.
Stablecoin Reward Caps at the Center of Talks
Negotiations with Republican Senator Thom Tillis center on limiting stablecoin rewards to reduce potential deposit outflows from banks. Alsobrooks noted that crypto firms have already agreed to restrictions on balance-based rewards, while banks previously rejected a White House proposal that capped rewards only on certain transactions and excluded balance payments. Lawmakers and industry participants must be prepared to walk away "just a little bit unhappy," she said, as perfect agreements are rare in legislative processes.
Tillis Weighs Options Amid Industry Lobbying
Tillis has not finalized his stance on the current draft. He met with industry representatives and White House officials last week, and reviewed language crafted after weeks of bank-crypto talks. Sources say discussions remain unresolved. Tillis plans separate meetings with Coinbase and banking trade groups before deciding, though timing is unconfirmed. His vote is critical as the committee moves toward markup.
External Pressure and Market Signals
Former President Donald Trump has urged banks to quickly strike a deal with crypto firms. Polymarket prediction markets show a 69% probability that Trump signs the bill into law. Solana Policy Institute President Kristin Smith expects passage by July, though Democratic concerns over ethics and conflicts of interest remain unresolved.