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The White House and two key senators have reached a tentative agreement on crypto legislation that could restart action on the CLARITY Act. The reported deal focuses on stablecoin yield, which has become the main dispute between banks and digital asset firms. Politico reported that Sen. Thom Tillis and Sen. Angela Alsobrooks said they now have an “agreement in principle” after talks with White House officials.
The issue has delayed progress on the Senate’s broader crypto market structure effort since January. Lawmakers have been trying to decide whether crypto firms should offer yield or rewards on stablecoin balances and how those programs should be regulated. The tentative agreement could remove a major obstacle before the bill returns to committee work in the coming weeks.
The dispute centers on whether stablecoin rewards resemble bank deposits closely enough to create financial risk. Banking groups have argued that yield-bearing stablecoins could pull funds away from traditional deposit accounts. That concern has shaped the current Senate debate and pushed negotiators to search for a narrower compromise.
Alsobrooks said the new language would help protect innovation while reducing the risk of “widespread deposit flight.” She also said the proposal aims to block yield payments on “passive” balances. Tillis said the parties appear to be in a good place, but he added that industry participants still need to review the language before negotiators finalize a broader deal.
The reported terms remain limited, and negotiators have not released full bill text. Even so, the emerging outline points to a middle-ground approach. Under that framework, lawmakers may restrict passive yield while still examining whether some activity-based rewards can fit within the bill. That distinction has become central to the effort to bridge the gap between banks and crypto companies.
The CLARITY Act aims to set rules for digital asset trading platforms, token oversight, custody, and other core parts of the crypto market. Senate negotiators have treated the stablecoin yield question as one of the bill’s most difficult unresolved issues. As a result, any agreement on that point could improve the chances of a markup in April.
The current talks also follow the enactment of the GENIUS Act in July 2025. The White House said that the law created a federal framework for payment stablecoins and required full reserve backing, monthly disclosures, and stronger compliance standards. That law gave the industry a formal stablecoin structure, but it did not end broader debates over how other parts of the digital asset market should operate.
White House crypto adviser Patrick Witt publicly described the latest development as a major milestone toward passing the CLARITY Act. His remarks suggest the administration sees the tentative agreement as progress, not a final resolution. He also noted that more work remains on this issue and on other outstanding parts of the bill.
That means the legislation still faces several steps before final approval. Industry review could change the current language, and other policy disputes may surface once the stablecoin issue moves closer to resolution. Still, the agreement in principle marks a clear shift in the negotiations. For now, it gives Senate lawmakers and the White House a workable starting point as they try to build a federal regulatory framework for digital assets.
