Senate, White House Reach Deal on Clarity Act to Resolve Stablecoin Standoff

Legislative Breakthrough on Stablecoin Regulation

The cryptocurrency sector is approaching a definitive legislative milestone after US Senators Thom Tillis and Angela Alsobrooks confirmed an "agreement in principle" with the White House regarding key provisions of the Clarity Act. According to reports, this deal addresses critical language surrounding stablecoins designed to stabilize the banking system.

Resolving the Deposit Flight Concern

The primary friction point in the bill's history has been the debate over whether crypto exchanges should be permitted to pay yield on stablecoin holdings. While major industry players like Coinbase have advocated for these rewards, traditional banking representatives warned that such practices could trigger a "widespread deposit flight" as customers migrate to higher-yielding digital assets.

In comments made to Politico on Friday, Senators Tillis and Alsobrooks stated that the proposed language changes aim specifically to prevent this exodus of funds. Senator Alsobrooks emphasized that the compromise would not only safeguard deposits but also "protect innovation" within the United States.

Presidential Pressure and Industry Alignment

The resolution comes amidst high-stakes negotiations at the White House involving crypto executives, banking leaders, and regulators. President Donald Trump has actively intervened to push the legislation forward, siding with the digital asset community against traditional banking opposition.

On his social media platform Truth Social, the President declared:

"The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage."

He further argued that financial institutions must reach a favorable arrangement with the sector, stating, "They need to make a good deal with the Crypto Industry because that's what's in best interest of the American People."

This stance marks a shift from earlier positions; Coinbase had withdrawn its support for the bill in January, and JPMorgan Chase CEO Jamie Dimon recently suggested that crypto firms seeking to offer rewards should be regulated as banks.

Regulatory Clarity on Asset Classification

Parallel to the legislative progress, regulatory clarity has improved following a landmark interpretation by the US Securities and Exchange Commission (SEC). The new guidance divides cryptocurrencies into two distinct categories: tokenized securities and non-security crypto assets. Notably, assets such as XRP and Solana have been classified as commodities.

Crypto lobbyists indicated to DL News that these rules are unlikely to be overturned. Since President Trump assumed office, the administration has signed multiple pro-crypto bills, and the SEC has adopted a significantly different regulatory posture compared to previous years.

DL News correspondent Mathew Di Salvo reported on the developments.