Trump’s crypto advisor confirms ‘agreement in principle’ on CLARITY Act

There is a little relief that the stalled crypto market structure bill, the CLARITY Act, may regain momentum soon.

On the 20th of March, Patrick Witt, President Donald Trump’s chief crypto advisor, confirmed that the Senate and the White House had reached an ‘agreement in principle’ to advance the bill.

Witt hailed the deal as a ‘major milestone’ to unlock the bill and credited Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) for brokering the deal. He added,

More work to be done to close out this and other outstanding issues, but this is a major milestone toward passing the CLARITY Act.

With the bipartisan support now secured, the ball will be in the banking industry’s court. At the time of writing, neither the Bank Policy Institute (BPI) nor the American Bankers Association (ABA) had issued a statement on the agreement yet.

So, what’s the deal all about?

Details of the agreement

The Digital Market Clarity Act (CLARITY Act) was passed in the House last July. However, it has stalled in the Senate since January 2026 due to the stablecoin yield issue.

The banking industry worried that the stablecoin reward loophole in the GENIUS Act could trigger a flight of deposits. In response, it opposed the CLARITY Act unless the issue was addressed. There have been three negotiations to finalize a yield deal between the banking sector and the crypto industry. But all failed to resolve the issue.

The latest stablecoin yield compromise now seeks to block rewards on passive stablecoin balances. This would address banks‘ deposit flight concerns, as payment stablecoins will not operate like an interest-bearing savings account.

At the same time, activity-based rewards will be allowed for transfers, remittances, platform utility, and others. According to negotiators, this would ensure innovation isn’t stifled. It’s unclear whether the banks will agree to this compromise.

But a section of the crypto industry wasn’t entirely happy with it. Some leaders, such as Robinhood CEO Vlad Tenev, called for flexibility on what attracts yield.

It’s important that Congress and regulators remain flexible in determining the activities that allow for the payment of interest or yield.

Path to passage

Should the banks back the compromise, the Senate Banking Committee will likely hold another formal markup to advance the bill. This would likely happen after Easter recess.

However, whether the bill will be brought to the Senate floor for a vote and subsequently reconciled by the House before the U.S. elections remains unclear.

According to Kristin Smith of the Solana Policy Institute, the bill has until the August recess to advance.

Final Summary

• The Senate and the White House have reached a partisan agreement on a stablecoin yield compromise that could reignite momentum for the CLARITY Act.
• It remains to be seen whether the banking industry will support the stablecoin yield deal