U.S. senators and the White House have reached an agreement in principle on the CLARITY Act, breaking months of legislative gridlock over stablecoin regulation.
The core dispute centered on whether stablecoins should pay interest to holders. Banks opposed passive yield, fearing capital flight from traditional deposits. Crypto firms argued rewards drive adoption.
The compromise permits rewards only for active usage-transactions or platform interactions-but bans returns simply for holding stablecoins. Exact definitions remain under negotiation.
Lawmakers aim to foster innovation while safeguarding the financial system. The deal reflects rare bipartisan alignment on digital asset policy.
Industry feedback will shape the final text. Other open issues include DeFi oversight and regulatory jurisdiction. A Senate Banking Committee vote could follow within weeks.