Crypto and Banks Near Deal on CLARITY Act as Trump Signing Odds Rise

The cryptocurrency industry and traditional banks are reportedly approaching a landmark agreement on stablecoin yield provisions — one of the biggest sticking points holding back the CLARITY Act. Digital Chamber CEO Cody Carbone expressed confidence that both sides could finalize a resolution within the coming week, bringing long-awaited crypto legislation closer to reality.

The central dispute has revolved around whether third-party crypto firms should be permitted to distribute stablecoin rewards to users. Banks have firmly opposed this, arguing it could trigger significant deposit flight from traditional financial institutions. A White House-drafted compromise has already gained acceptance from crypto firms, limiting stablecoin rewards to specific transactions rather than general balance distributions. Despite this concession, banks have remained cautious, though pressure is mounting on all sides to close the gap.

Senator Angela Alsobrooks, who previously proposed amendments targeting deposit flight risks, recently acknowledged that a middle-ground solution will require everyone to accept less than ideal terms. Alongside Senator Thom Tillis, she remains a pivotal figure in the bill's path forward. Tillis could help push the legislation through the Senate Banking Committee along party lines, while Alsobrooks' backing would secure crucial bipartisan support.

Prediction market platform Polymarket now places the probability of President Trump signing the CLARITY Act into law this year at 61%, climbing from roughly 56% just days earlier. Galaxy Digital's research head Alex Thorn has cautioned that if the bill fails to clear the committee stage by April and reach the Senate floor by May, its passage odds will drop sharply.

Beyond stablecoin yields, unresolved matters including DeFi regulation, developer protections, and ethics provisions still linger in the background. Senate Banking Committee Chair Tim Scott is expected to shed light on the bill's markup timeline at the upcoming DC Blockchain Summit, potentially signaling the next major milestone for crypto legislation in the United States.