U.S. Senators Work on Stablecoin Yield Compromise to Advance Crypto Clarity Act

U.S. efforts to advance the CLARITY market structure bill remain at an impasse, with no recent progress reported as banking-sector opposition to stablecoin rewards continues to block compromise. White House Crypto Advisor Patrick Witt publicly urged lawmakers to keep the bill pro-innovation and criticized attempts to turn the legislative process into an anti-competition framework. Witt also challenged banks’ argument that stablecoin rewards would trigger major deposit flight, saying crypto platforms have offered such rewards for years without producing that outcome. The banking sector argues that reward-bearing stablecoin products could pull deposits from traditional institutions and reduce funds available for local lending, while crypto executives have defended stablecoin rewards as a matter of consumer choice and market competition. In addition to the yield dispute, the bill still faces unresolved issues including Democratic demands for stronger anti-money laundering safeguards, measures addressing risks tied to decentralized finance, and tighter limits on personal crypto holdings by senior government officials. The Senate Agriculture Committee has approved its section of the bill, but discussions in the Senate Banking Committee are still ongoing and no timeline for a final compromise has been confirmed.