A tentative compromise on stablecoin yield is opening a path for the CLARITY Act to move again in Washington. Reports said White House officials and US lawmakers are working on terms that could address one of the central disputes that slowed the crypto market structure bill earlier this year.
The core issue is whether stablecoin issuers should be allowed to offer yield to holders. That question has split banks and crypto firms for months, and it now sits at the center of efforts to revive the legislation.
Reported Senate deal narrows how yield could be allowed
According to Politico, Senator Thom Tillis and Senator Angela Alsobrooks reached an “agreement in principle” on stablecoin yield. Both lawmakers serve on the Senate Banking Committee, which has been deeply involved in digital asset policy discussions.
Alsobrooks said the arrangement would help advance the bill while limiting the risk of deposit flight from the banking system. She also said the deal would block stablecoin yield on “passive balances”, pointing to a narrower framework rather than broad permission for issuers to pay holders across the board.
CLARITY Act was expected to advance, then stalled
The Digital Asset Market Clarity Act of 2025 had been expected to move ahead after the GENIUS stablecoin framework became law. That changed once debate intensified over whether issuers could share yield directly with token holders.
Lawmakers and industry groups have treated that point as one of the bill’s defining questions. Tillis said the crypto industry still needs to review the emerging agreement before anything is finalized, leaving room for changes to the text before formal action begins.
At the DC Blockchain Summit, Senator Cynthia Lummis said the path to a broader crypto framework still depends on resolving these issues. A spokesperson for Lummis added that a deal could come together within days as work continues on ethics language tied to the bill.
Banks and crypto firms are still on opposite sides
Banks have pushed back against yield-bearing stablecoins, arguing that they could draw deposits away from traditional accounts. That concern has become one of the main arguments against allowing broad yield features in stablecoin products.
The White House has also heard the opposite view. Patrick Witt, executive director of the White House Council of Advisors for Digital Assets, said those concerns are overstated and argued that regulated yield-bearing stablecoins could bring new capital into the US banking system. Negotiations are active again, but the timing for a final deal remains unclear.