In a significant development for the cryptocurrency sector, U.S. Senators Thom Tillis and Angela Alsobrooks have reportedly reached a preliminary agreement on a key aspect of the Digital Asset Market Clarity Act. This compromise is expected to pave the way for the bill to advance in the Senate.
According to Connor Lounsbury, communications director for Alsobrooks, the senators are set to engage with industry stakeholders for feedback on their agreement. “This is an important step forward for market structure legislation, a step that both have worked for months to resolve,” Lounsbury stated. However, he noted that there are still unresolved issues within the broader legislation, particularly concerning ethics and illicit finance, which need to be addressed for a bipartisan vote in the Banking Committee.
The focus of the compromise centers on stablecoin yield, a contentious issue that has been a major hurdle in the negotiations. Reports indicate that the agreement will prevent rewards on passive balances of stablecoins, a move aimed at addressing concerns that such rewards could mimic interest on bank deposits, potentially jeopardizing lending practices.
Alsobrooks confirmed the agreement, stating, “Sen. Tillis and I do have an agreement in principle. We’ve come a long way. And I think what it will do is to allow us to protect innovation, but also gives us the opportunity to prevent widespread deposit flight.” The senators are expected to finalize the details before sharing them with stakeholders.
While this agreement marks progress, other aspects of the Clarity Act remain contentious, including its approach to decentralized finance (DeFi), which has raised concerns among some lawmakers regarding illicit financial activities. A Senate Banking Committee hearing on the bill is anticipated in late April, pending approval from the committee.
Senator Cynthia Lummis, who leads the banking panel’s crypto subcommittee, has expressed optimism about the timeline, suggesting that a resolution could be reached by May. However, the legislative schedule is tight, with competing priorities such as a Republican voter-ID bill and ongoing discussions related to the conflict in Iran potentially impacting floor time.
U.S. Senators Thom Tillis and Angela Alsobrooks have reached a preliminary agreement on a key provision of the Digital Asset Market Clarity Act, potentially advancing the bill in the Senate. While this compromise addresses stablecoin yield concerns, other issues remain unresolved as lawmakers prepare for a Senate Banking Committee hearing next month.