US Senate and White House Reach Agreement on Stablecoin Regulation

The Senate and White House have agreed on a key provision for the stalled CLARITY Act, which has been stuck in limbo due to disagreements over stablecoin regulation.

According to Patrick Witt, President Trump's chief crypto advisor, the agreement is a 'major milestone' towards passing the bill. The compromise involves blocking rewards on passive stablecoin balances, while allowing activity-based rewards for transfers and other activities.

The banking industry has been resistant to the CLARITY Act due to concerns that stablecoins could trigger a flight of deposits. However, it remains unclear whether the banks will support the new compromise.