White House crypto adviser Patrick Witt stated that a recent compromise on stablecoin yield is expected to hold as the Senate attempts to advance its digital assets bill.
Witt, executive director of the President’s Council of Advisors for Digital Assets, expressed optimism that the bipartisan agreement on stablecoin yield remains intact. He indicated that this was a critical step before addressing other outstanding issues, many of which are now being resolved behind the scenes.
The Clarity Act faced potential roadblocks beyond stablecoin yield, including protections for decentralized finance (DeFi) and proposals to bar senior government officials from profiting from the crypto sector.
Witt reported significant background progress on these negotiations, stating, "We're very close to closing them out." He added that previously intractable issues are nearing resolution, boosting confidence in the bill's advancement.
The bill requires a Senate Banking Committee markup hearing before a full Senate vote. Objections from bank lobbyists regarding stablecoin yield had previously delayed the process.
White House economists recently issued a report downplaying threats to the banking sector from stablecoin yields, a view rebuffed by the American Bankers Association, which argued the White House's claims were flawed.