regarding<\/a> the stablecoin yield mechanism may be close to resolution,\u201d with several informed sources saying negotiators have launched a new round of talks around updated text. Odds trackers quoted by Coingape now put the bill\u2019s chances of passing this year at roughly 64%, up sharply since February.<\/p>\nEarlier drafts pushed by senators Thom Tillis and Angela Alsobrooks had drawn fire from large industry players, with Coinbase and Stripe among those warning that an outright ban on passive stablecoin yields would gut key revenue lines and crimp innovation. Coinbase chief legal officer Paul Grewal recently told FinTech Weekly that a deal on yields is \u201cvery close,\u201d even as the March 23 draft still \u201cbans passive yield on stablecoin balances directly or indirectly and permits only narrowly defined activity\u2011based rewards.\u201d Coinbase CEO Brian Armstrong has accused big banks of \u201cundermining\u201d President Trump\u2019s crypto agenda by backing language that would ban the 4\u20135% stablecoin yields underpinning an estimated $1.35 billion in annual revenue for the exchange. In a previous crypto.news story, Armstrong argued that allowing such payouts simply passes through Treasury returns already required under the 2025 GENIUS Act, which mandates that payment stablecoins be fully backed by cash or short\u2011term U.S. government debt.<\/p>\n
White House signals, banking pushback<\/h1>\n
A still\u2011unpublished White House research report on stablecoin yields is widely expected to conclude that banks should \u201cnot view stablecoin yield offerings as a competitive threat,\u201d according to comments by White House crypto adviser Patrick Witt. Witt told Yahoo Finance that reward programs on fully backed stablecoins \u201cdo not undermine the banking industry\u2019s business model,\u201d framing the fight as a chance for both sectors to coexist rather than a zero\u2011sum battle. Yet banking groups remain aggressive: community banks have warned Congress that yield\u2011style stablecoins could siphon \u201cbillions from insured deposits,\u201d while some Wall Street institutions argue that interest\u2011bearing stablecoins function as \u201cshadow deposits\u201d that could drain as much as $500 billion from the system by 2028.<\/p>\n
<\/p>\n
If the yield question is finally neutralized in committee later this month, lawmakers and lobbyists expect the Clarity Act debate to pivot to unresolved issues around DeFi rules, tokenization regimes, and which tokens fall under securities law versus commodities law, as detailed in prior crypto.news coverage of the bill. With stablecoins like USD Coin, which maintains a $70\u2011plus billion market capitalization and trades near $1 on crypto.news price trackers, now central to both payments and on\u2011chain yield strategies, the outcome of the Clarity Act\u2019s sprint through the Senate Banking Committee will help decide how far U.S. investors can go in chasing returns on \u201cdigital dollars\u201d without leaving the banking system behind.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
Crypto lobbyists, banks, and the White House are circling a fragile compromise on stablecoin yields that could finally unstick the Clarity Act and set the rules for \u201cdigital dollar\u201d rewards…<\/p>\n","protected":false},"author":1,"featured_media":11497,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=25161"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25161\/revisions"}],"predecessor-version":[{"id":25162,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25161\/revisions\/25162"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/11497"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=25161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=25161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=25161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}