U.S. lawmakers reopened work on the Clarity Act in March, but the fight over stablecoin rewards is still unresolved. A White House deadline for banks and crypto firms to settle that issue by March 1 passed without a public agreement. The talks did not stop there. People involved in the process said negotiations are still active in Washington, while senators prepare for another possible committee markup later this month.
The March 1 target came from Patrick Witt, executive director of the White House Crypto Council. Sources speaking to Crypto in America said treating that date as a hard endpoint misses how the legislative process is actually unfolding. Summer Mersinger said the negotiations involve multiple stakeholders and require sustained engagement over time, not a single deadline-driven breakthrough.
Banks and crypto firms remain split over interest-like rewards
The central dispute is whether stablecoin holders should be able to receive returns through rewards programs, memberships, or similar structures that resemble interest. One banking source said banks do not want stablecoin balances to generate deposit-like returns under another label. From their perspective, if lending or staking is involved, it should stay active, time-locked, and clearly connected to investment risk.
The yield debate is now in its second month. Banking representatives worry that vague statutory language could allow interest to reappear through renamed products. Crypto firms want more room in the final text. Their preference is to leave some of the detailed boundaries to agency rulemaking rather than fix every limit directly in the statute.
OCC signals a stricter direction
Last week, the Office of the Comptroller of the Currency pointed toward tighter constraints. Its proposed rulemaking tied to the GENIUS Act suggested that stablecoin rewards could face narrower limits. That signal appears to strengthen the banking side of the argument and has kept the yield question at the center of the debate.
Even with that friction, some participants see movement. Collin McCune said lawmakers are trying to find a balance that leaves neither side fully satisfied. In his view, that can indicate the negotiations are getting closer to a workable outcome. Amanda Tuminelli said the yield question has overshadowed other parts of the bill, and stakeholders are still waiting for updated legislative text.
Committee attention shifts to mid-to-late March
Focus is now on the Senate Banking Committee. Sources said a possible markup could come in mid-to-late March. That timing leaves room for staff and negotiators to keep working through unresolved provisions, including sections related to DeFi and ethics. According to Crypto in America, staffers who attended a recent Senate Democrats meeting described the discussions as positive, though the main points of disagreement remain in place.