Senators met today in Washington for the CLARITY Act negotiations, engaging White House crypto advisor Patrick Witt on unresolved issues. The meeting included Senators Cynthia Lummis, Thom Tillis, and Tim Scott, focusing on stablecoin yield rules and legislative timing. Lawmakers aim for an April markup while targeting year-end passage through coordinated Senate and White House efforts.
Stablecoin Yield Talks on The CLARITY Act
During the closed-door session, Senate Banking Republicans pressed Patrick Witt to release a White House economic study. According to journalist Eleanor Terrett, the report examines stablecoin yield and its effect on bank deposits.
Lawmakers have reviewed the findings, but officials have not made the document public. The report reportedly includes economic analysis that leans positive toward crypto markets. However, concerns remain around potential deposit flight from traditional banks.
At the same time, negotiations around stablecoin yield provisions remain unsettled. Senator Cynthia Lummis told reporters discussions are progressing but remain “in a delicate state.” She said lawmakers now focus less on immediate text and more on stakeholder outreach.
Additionally, as CoinGape reported, Lummis said the CLARITY Act markup could hold in April as the Senate eyes year-end passage. Lummis added that the meeting changed expectations around a viable path forward.
She described the discussions as opening new directions not previously considered. Meanwhile, Witt declined to comment after the meeting and appeared visibly frustrated.
Senate Targets April Markup
Senator Tim Scott said on Tuesday during the DC Blockchain Summit this week he expects a stablecoin yield proposal soon. He credited Lummis, Angela Alsobrooks, and Thom Tillis for advancing negotiations.
According to Scott, lawmakers could finalize initial proposals by the end of the week. This step would support plans to move the CLARITY Act toward markup in April. However, lawmakers continue to balance competing interests between crypto firms and banks, who are close to a deal on the stablecoin yields provision.
Banks have raised concerns that yield-bearing stablecoins could draw deposits away from traditional institutions. In response, lawmakers are working to refine provisions that address these risks.
Meanwhile, on X, Senator Lummis said clear rules and jurisdiction remain central to advancing digital asset legislation. Scott echoed similar points, noting efforts to expand financial access through digital assets.
Housing Talks Add Complexity To Crypto Bill
Alongside policy debates, Senate Republicans are considering attaching banking provisions to the crypto legislation. According to Politico’s Jasper Goodman, lawmakers discussed linking the CLARITY Act to a housing package.
The proposal would combine community bank deregulation measures with the crypto framework. This approach aims to resolve a standoff between the House and Senate over housing legislation. The Senate passed its housing bill earlier this month, while House Republicans favor their own version.
Some senators believe merging the issues could increase the chances of passage in both chambers. However, uncertainty remains over whether House Republicans would accept such a trade. As per Polymarket, there is a 62% chance that the CLARITY Act will be signed into law in 2026.
Source: Polymarket
Source: https://coingape.com/clarity-act-negotiations-progress-as-senators-meet-with-trumps-crypto-advisor/
