Senators Break Clarity Act Deadlock With White House Deal
After months of deadlock over stablecoin yield provisions, President Trump intervened to push banks and crypto companies toward compromise on the Clarity Act.
Key Takeaway
Stablecoin yield provision was the final hurdle — resolution clears path for comprehensive US crypto law.
Senators Thom Tillis and Angela Alsobrooks announced an agreement in principle with the White House on stablecoin language that blocked the Clarity Act for months, according to a Friday report by Politico.
The deal targets the bill's most contentious provision: whether crypto companies can pay yield on stablecoins. Senator Alsobrooks said the agreement would prevent deposit flight while protecting innovation in the US. Banks like JPMorgan Chase have fought the provision, with CEO Jamie Dimon arguing that crypto companies should face bank-level regulation if they want to offer stablecoin rewards. The concern is simple — customers pulling deposits from traditional banks to chase higher yields at crypto platforms.
The deadlock got ugly enough that President Donald Trump intervened this month, posting on Truth Social that banks should not try to undercut the GENIUS Act or hold the Clarity Act hostage. He said banks need to make a good deal with the crypto industry because that's in the best interest of the American people. Trump signed the GENIUS Act into law in July 2025, creating the first federal stablecoin framework for banks and corporations.
Coinbase pulled its support for the Clarity Act in January after the Senate Banking Committee released a 278-page draft with stablecoin yield restrictions and expanded surveillance provisions for DeFi protocols. CEO Brian Armstrong cited concerns over tokenized equity limits and weakened CFTC authority.
The SEC issued a landmark interpretation of federal securities laws this week, categorizing XRP and Solana as commodities in a joint 68-page guidance with the CFTC. SEC Chair Atkins described the framework as interim policy pending Clarity Act implementation. The House passed the Clarity Act in July 2025 with bipartisan support during Crypto Week, and the March 23, 2026 agreement unblocks the Senate path forward.
This article was written based on reporting from Dlnews.
