A significant breakthrough in U.S. cryptocurrency regulation has been achieved as lawmakers reached a tentative deal on a contentious issue within the Digital Asset Market CLARITY Act. According to updates from U.S. Senate Banking Committee members, Senators Thom Tillis and Angela Alsobrooks have agreed "in principle" on how to handle stablecoin yield, clearing a major hurdle that had stalled the bill's bipartisan support.
The compromise centers on restricting rewards on passive stablecoin holdings, a feature that traditional banks argued closely resembled interest on deposits and could lead to a flight of capital from the conventional financial system. Senator Alsobrooks confirmed the progress, stating, "Sen. Tillis and I do have an agreement in principle… we've come a long way." She emphasized the goal is to "protect innovation" while preventing "widespread deposit flight."
This development could pave the way for the CLARITY Act to move toward a Senate hearing, marking a critical step toward establishing long-awaited legal clarity for digital assets in the United States. The bill aims to define regulatory oversight and create clear rules for stablecoins, exchanges, and broader crypto markets.
Despite this progress, the legislation is not finalized. Key issues remain unresolved, including how the bill will handle decentralized finance (DeFi) and concerns around illicit finance risks. Lawmakers are expected to consult further with both crypto industry stakeholders and banking representatives. The actual legislative text has not yet been widely circulated, with April standing as a key turning point for potential policy decisions.
