US senators and the White House have reportedly reached an agreement in principle on changes to stablecoin language in the Clarity Act, potentially breaking a long-running standoff between banks and crypto firms.
The proposed revisions are meant to prevent deposit flight from banks while preserving room for digital asset innovation.
Stablecoin dispute
According to Politico, senators Thom Tillis and Angela Alsobrooks said language in the bill could be adjusted to stop “widespread deposit flight.”
Alsobrooks said she believed the agreement would both reduce that risk and protect innovation in the US.
The dispute has centered on whether crypto companies should be allowed to pay rewards on stablecoins held by customers.
Firms including Coinbase have pushed for that ability, while major banks have argued that yield-bearing stablecoins could pull deposits away from the traditional banking system.
Pressure from banks and crypto firms
The Clarity Act, which is designed to establish a clearer federal framework for digital assets, had stalled as those competing interests clashed.
Coinbase had previously withdrawn support for the bill.
JPMorgan CEO Jamie Dimon also said this month that crypto firms offering stablecoin rewards should be regulated like banks.
President Donald Trump, however, publicly backed the crypto industry’s position and urged negotiators to move the legislation forward.
He wrote on Truth Social:
“The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage.”
Broader policy shift
The reported breakthrough comes during a broader shift in Washington’s crypto posture.
This week, the SEC issued guidance dividing digital assets into tokenized securities and non-security crypto assets.
Under that framework, assets such as XRP and Solana were categorized as commodities.
The Clarity Act negotiations now appear to be part of a wider push by the Trump administration and lawmakers to deliver more crypto-friendly rules in the US.
