The longstanding issue of yields on stablecoins, which has been holding up a decision on the CLARITY Act, is at last beginning to show signs of resolution, as lawmakers have agreed on a tentative agreement which might help revive the crypto bill.
Senators Thom Tillis and Angela Alsobrooks confirmed on Friday, March 20, 2026, that an agreement in principle has been reached on the issue of yields on stablecoins.
The compromise, backed by the White House, marks the first real breakthrough after months of tense negotiations and heavy lobbying from both banks and crypto companies behind the scenes.
At its core, the deal draws a clear line: earning yield simply for holding a stablecoin, often called passive yield, would be banned. But rewards tied to actual activity, such as making payments or using a platform, would still be allowed.
What’s behind the new compromise?
Lawmakers say the goal is to strike a balance between supporting innovation and preventing large amounts of money from flowing out of traditional banks into high-yield digital alternatives.
That concern has been central to the debate. The stablecoin market has grown to about $316 billion, making it too big for regulators to ignore.
Banks have repeatedly warned that if stablecoins offered unrestricted interest, deposits could migrate away from the traditional system at scale. Some estimates cited during negotiations suggested trillions of dollars could be at risk over time.
The pressure mounted as crypto firms started to make returns that were similar to those offered by savings accounts. For example, Coinbase is currently offering returns of around 4 percent on its USDC product. Some crypto firms are offering higher returns. From the banking sector’s point of view, this was not innovation; this was competition
Stablecoin law in place?
The agreement doesn’t mean the law is done. In fact the reality is far from it. The CLARITY Act still faces several procedural hurdles, including committee approval, a full Senate vote requiring bipartisan support, reconciliation with the House version of the bill, and ultimately the president’s signature.
Lawmakers are aiming to move the process forward in April, but the timeline is tight. If momentum slips, the window for passing major crypto legislation could close as election politics take over.
For now, though, Washington appears to have found a workable middle ground, one that gives the crypto industry a framework to operate within, while reassuring banks that stablecoin yields won’t directly mirror traditional deposits anytime soon.