White House, senators reach tentative deal to ban stablecoin yields

U.S. senators and the White House have reached a tentative agreement on provisions within a market structure bill, known as the Clarity Act, that would address stablecoin yields, Politico reported. Senator Angela Alsobrooks stated that the provisional deal would ban yield payments on passive stablecoin balances. She described the measure as a compromise designed to protect both crypto innovation and the stability of bank deposits, adding that the proposal still requires review from both the banking and crypto industries before it can move forward. Specific details of the agreement have not been disclosed. If the deal holds, the Senate Banking Committee could begin deliberations as early as late April.