Senators met today in Washington for CLARITY Act negotiations, engaging White House cryptocurrency advisor Patrick Witt on unresolved issues. The meeting included Senators Cynthia Lummis, Thom Tillis, and Tim Scott, with a focus on stablecoin return rules and legislative timing. Lawmakers are aiming for April while aiming for year-end passage through the coordinated efforts of the Senate and White House.
Stablecoin yield talks on The law of clarity
During the closed session, Senate banking Republicans pressured Patrick Witt to release a White House economic study. According to the journalist Eleanor Terretthe report examines stablecoin returns and their impact on bank deposits.
Lawmakers have reviewed the findings, but officials have not made the document public. The report reportedly includes economic analysis favorably skewed toward cryptocurrency markets. However, concerns remain about the potential flight of deposits from traditional banks.
Meanwhile, negotiations on stablecoin revenue provisions remain unstable. Senator Cynthia Lummis told reporters that discussions were progressing but were still “in a sensitive state.” She said lawmakers are now focusing less on instant text and more on communicating with stakeholders.
Additionally, as CoinGape reported, Loomis said the law of clarity Tags can be held in April While the Senate looks forward to approval at the end of the year. Loomis added that the meeting changed expectations about a viable path forward.
She described the discussions as opening up new directions that had not been considered before. Meanwhile, Witt declined to comment after the meeting and appeared visibly frustrated.
Senate targets April markup
Senator Tim Scott said on Tuesday during this week’s DC Blockchain Summit that he expects a stablecoin yield proposal soon. Loomis, Angela Alsobrooks and Thom Tillis were credited with moving the negotiations forward.
According to Scott, lawmakers could finalize the initial proposals by the end of the week. The move will support plans to move the CLARITY Act toward tokenization in April. However, lawmakers continue to balance competing interests Crypto companies and bankswho are close to reaching an agreement on providing stablecoin returns.
Banks have raised concerns that yield-bearing stablecoins could pull deposits away from traditional institutions. In response, lawmakers are working to improve provisions that address these risks.
Meanwhile, regarding X, Senator Lummis said that clear rules and jurisdiction remain key to strengthening digital asset legislation. Scott echoed similar points, pointing to efforts to expand financial access through digital assets.
Housing talks add complexity to the cryptocurrency bill
Besides policy discussions, Senate Republicans are considering linking banking provisions to cryptocurrency legislation. According to Politico newspaper Jasper Goodmanlawmakers discussed linking the CLARITY Act to the housing package.
The proposal will combine community banking liberalization measures with a cryptocurrency framework. This approach aims to resolve the standoff between the House and Senate over housing legislation. The Senate passed the housing bill earlier this month, while House Republicans favor their own version.
Some senators believe that merging the issues could increase their chances of passage in both chambers. However, there remains uncertainty about whether House Republicans would accept such a trade. According to Polymarket, there is a 62% chance that the CLARITY Act will be signed into law in 2026.
source: Polymarket
