After months of stalled negotiations, the CLARITY Act is showing signs of progress. U.S. senators and the White House have reached an “agreement in principle,” which could allow the bill to move forward in the Senate.
The legislation had been stuck since January, mainly due to disagreements over how stablecoins should function. This latest development suggests lawmakers are getting closer to resolving one of the biggest obstacles.
Read also: Crypto Regulation Slows Down: CLARITY Act Vote Delayed
The Fight Over Yield
The core issue has been whether stablecoins should offer rewards to users who hold them. Crypto firms support this feature, while banks have pushed back, arguing it could draw deposits away from traditional accounts.
The proposed compromise would restrict rewards on passive holdings. Users would not earn returns simply by holding stablecoins. At the same time, activity-based rewards tied to usage – such as transactions or platform interactions – would still be allowed. This approach aims to address concerns from both sides, though the exact definitions are still being finalized.
Read also: How Does Crypto Staking Work? All You Need to Know
A Careful Balancing Act
Lawmakers are trying to support crypto development while limiting risks to the financial system. The discussions reflect ongoing efforts to create rules that allow digital assets to grow without disrupting existing institutions.
The agreement between senators from both parties, along with input from the White House, highlights a broader attempt to find common ground on crypto regulation.
Despite the progress, the bill is not yet finalized. Industry feedback will play a key role in shaping the final version, and both crypto companies and banking groups are expected to review the proposed terms. There are also other unresolved issues within the CLARITY Act, including rules for decentralized finance and broader regulatory responsibilities.
Read also: What the GENIUS Act Means for Stablecoin Regulation
What Comes Next
If stakeholders accept the compromise, the Senate Banking Committee could move forward with a formal vote in the coming weeks. This would be a major step toward establishing clearer crypto regulations in the United States.
