Tentative Deal on Stablecoin Yield Could Advance CLARITY Act
- Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks have reached an “agreement in principle” regarding stablecoin yield.
- The deal aims to protect innovation while preventing widespread deposit flight, prohibiting yield on “passive balances.”
- Senator Cynthia Lummis indicated that a comprehensive crypto regulatory framework is close to being passed.
- The Digital Asset Market Clarity Act of 2025, known as the CLARITY Act, stalled earlier this year due to industry concerns over stablecoin yield sharing.
- The banking sector opposes yield-bearing stablecoins, fearing loss of market share and deposit flight.
A tentative agreement on stablecoin yield could help advance the CLARITY Act, which seeks to establish a clear regulatory framework for digital assets. The outcome will significantly impact how the crypto market operates alongside traditional banking systems.
If finalized, this deal may pave the way for regulated dollar-pegged yield-bearing stablecoins, addressing concerns raised by banks about potential deposit flight and competitive erosion.(Source)
