The White House and senators 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 revised language is aimed at limiting bank deposit flight while allowing crypto innovation. The breakthrough comes as Washington adopts a more crypto-friendly regulatory stance. 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. Coinbase had previously withdrawn support for the bill.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.” This week, the SEC issued guidance dividing digital assets into tokenized securities and non-security crypto assets, with XRP and Solana 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. The broader shift in Washington’s crypto posture is underscored by these developments.
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