White House, Senate Agree on Stablecoin Yield Rules
Senate negotiators and the White House resolved a months-long dispute over stablecoin yield regulations. The compromise likely bars passive yield payments while potentially allowing activity-based rewards.
Key Takeaway
Compromise bans passive stablecoin yields but may allow activity rewards, ending crypto bill deadlock.
Senator Angela Alsobrooks and Senator Thom Tillis announced an agreement in principle with the White House on Friday to resolve the stablecoin yield dispute that stalled crypto legislation since January.
The core fight pitted banks against crypto firms over whether stablecoins offering yield resemble unregulated deposits. Wall Street argued these programs could trigger deposit flight from FDIC-insured accounts. Circle and Coinbase countered that yields drive adoption and competitive digital money markets.
Alsobrooks said the agreement allows protection of innovation while preventing widespread deposit flight. Tillis described the deal as a positive step but noted he needs to consult industry stakeholders before finalizing details.
The tentative framework will likely bar yield payments on passive stablecoin balances while carving out exceptions for activity-based rewards, according to Politico. That structure attempts to satisfy banking regulators worried about deposit substitution without killing crypto firms' business models entirely.
The deal builds on the GENIUS Act signed in July 2025, which established federal stablecoin rules requiring full backing, transparency, and reserve disclosures. The Senate is targeting an April 2026 vote on the CLARITY Act, which defines regulatory oversight of trading platforms, tokens, and custody services.
This article was written based on reporting from Bitcoin Magazine.
