The CLARITY Act’s passage odds have risen to 68%, according to Polymarket data. Crypto firms and bank representatives are meeting in Washington this week to review a stablecoin yield compromise. The discussions follow weeks of negotiations involving Senators Cynthia Lummis, Thom Tillis, and Angela Alsobrooks.
CLARITY Act Passage Odds Rise
Polymarket data shows the CLARITY Act now holds a 68% chance of becoming law this year, up over 3%. This surge in odds comes as the CLARITY Act advanced as Senate and White House reached a deal on stablecoin yield.
Source: Polymarket
According to Kalshi, odds are at 47% for passage before July. However, August passage probability is at 72%. These projections come as lawmakers push forward with discussions on the CLARITY Act reforms.
Source: Kalshi
Crypto and Bank Groups Capitol Hill Meetings
As per Crypto In America, industry representatives are heading to Capitol Hill to review the latest legislative draft. Crypto trade groups will meet with Senate Banking Committee members today, March 23. Banking representatives are scheduled to follow with their own meeting on Tuesday.
These sessions aim to assess a compromise focused on stablecoin yield rules. The compromise follows nearly two months of discussions involving Senators Thom Tillis and Angela Alsobrooks. The White House was also influential in the draft language under review.
However, details of the legislative text remain undisclosed. One banking source told Crypto In America no group has a clear understanding of its contents so far.
Stablecoin Yield Ban and Policy Concerns
Despite limited transparency, one element appears certain within the CLARITY Act framework. The draft is expected to include a ban on yield for idle stablecoin balances. Banks have consistently opposed yield-bearing stablecoins, citing risks tied to deposit outflows and reduced lending capacity.
As a result, lawmakers have focused heavily on this issue. Last week, as CoinGape reported, Senator Cynthia Lummis addressed the topic during the DC Blockchain Summit. She stated that crypto platforms may not use banking-style language tied to rewards or deposits.
Lummis noted that terms resembling traditional banking products would likely be excluded from the final legislation. This aligns with broader efforts to separate crypto services from banking structures.
The Senate Banking Committee is targeting an April markup following the Easter recess. However, scheduling could shift due to ongoing debates around government funding and the SAVE America Act. These factors may influence the legislative timeline.
Additionally, other sections of the CLARITY Act still require revisions. These include provisions related to DeFi, token classification, and tokenization frameworks. These reasons have led to skeptisism with Galaxy’s Alex Thorn saying the CLARITY Act might still face delays despite stablecoin yield progress. Meanwhile, lawmakers continue to push for the release of a White House economic study.
The report examines stablecoin yield and its potential effects on deposit flows and lending. According to Crypto In America, the study could present economic analysis that supports aspects of the crypto sector. Senators have pressed White House Crypto Council Executive Director Patrick Witt to make the findings public.