Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks are leading the current round of negotiations. Senator Alsobrooks said previously that the compromise may leave both the crypto industry and banks dissatisfied.
The White House has hosted at least three meetings between crypto and banking representatives in an attempt to broker an agreement, but no deal has been reached. Banking groups have argued that stablecoin yield payments by exchanges exploit a gap left by the GENIUS Act, which prohibited stablecoin issuers from paying yield directly to holders.
Stablecoin yields represent a significant revenue stream for crypto exchanges. The two sides remain divided on how the provision should be structured, with talks described as ongoing.
Patrick Witt, executive director of the President's Council of Advisors for
Digital Assets, posted to X Wednesday that there was "plenty of uninformed FUD circulating on social media this week," adding that he expected the situation to resolve. Senator Cynthia Lummis also posted Wednesday that a bipartisan compromise is necessary for the CLARITY Act to pass and that her team is working to protect stablecoin rewards while preventing deposit flight from community banks.
Republicans are aiming to advance the bill before the midterms, where a shift in Congress could slow or halt its momentum. The House passed its version, the CLARITY Act, in July. Coinbase did not respond to a request for comment.
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