Work is underway to solidify a compromise that will propel the Digital Asset Market Clarity Act forward in the US Senate, according to Patrick Witt, the White House's main crypto adviser. Witt expressed optimism that the common ground achieved on stablecoin yield will endure, allowing the focus to shift to other outstanding issues. The executive director of the President's Council of Advisors for Digital Assets noted that resolving the yield issue was a crucial step before addressing other concerns, some of which have already been resolved. In addition to the stablecoin yield debate, the Clarity Act has faced potential roadblocks, including illicit financial protections in the decentralized finance (DeFi) space and a request to bar senior government officials from profiting from the crypto sector.
Witt declined to specify which topics have been settled but acknowledged that negotiations have made significant progress behind the scenes. The Clarity Act requires a markup hearing in the Senate Banking Committee before it can proceed to a final Senate vote.
A recent report by White House economists downplayed the threats posed by stablecoin yield, prompting a response from the American Bankers Association. Witt observed that bankers have varying views on stablecoins, depending on their proximity to the technology, with some viewing them more positively and others feeling threatened.