White House and lawmakers have struck a tentative deal on the CLARITY Act, banning stablecoin yield on 'passive balances' to prevent bank deposit flight. Senators Thom Tillis and Angela Alsobrooks, chairing the Senate Banking Committee, secured the agreement. Wyoming Senator Cynthia Lummis, a leading advocate, confirms a final deal is imminent with ethics language being finalized.
The bill, stalled since January over industry concerns about yield-sharing, would establish a clear crypto regulatory framework. White House advisors dismissed banking fears of deposit flight as 'overblown,' stating regulated stablecoins would attract new capital to banks.
