- White House targets CLARITY Act passage before July 4 as Senate talks advance.
- Stablecoin rewards compromise clears a major hurdle in ongoing crypto bill negotiations.
- White House backs broad ethics rules, opposes politician-specific restrictions.
The White House is aiming to move the Digital Asset Market Clarity Act through Congress before July 4, according to White House digital assets adviser Patrick Witt, who said the Senate Banking Committee is expected to advance the legislation later this month.
The update shows a continued momentum for the crypto market structure bill after months of delays tied to disagreements over stablecoin yield provisions and conflict-of-interest language. Witt also stated that discussions surrounding the stablecoin rewards issue are now largely settled, while separate negotiations continue over ethics rules linked to public officials and their families.
Speaking on the legislation’s progress, Witt said the administration had reached a compromise position that left both crypto firms and banks dissatisfied to a similar degree. According to Witt, the administration considers the stablecoin yield issue “closed,” suggesting that lawmakers have aligned on a revised framework following extended negotiations between the banking industry and digital asset companies.
Stablecoin Rewards Compromise Advances Senate Discussions
The latest reforms follow a compromise proposed by Senators Thom Tillis and Angela Alsobrooks concerning stablecoin rewards. Under the reported framework, activity-based rewards tied to actual platform usage would remain permitted, while idle yield models connected to passive stablecoin balances would face restrictions.
Coinbase Chief Legal Officer Paul Grewal backed the compromise during an interview at Consensus 2026, stating that the updated legislation preserves the features most important to Coinbase’s stablecoin business and broader financial market activity. Grewal also urged banking groups to accept the agreement after months of negotiations.
According to Grewal, banking representatives repeatedly argued that stablecoin rewards could trigger deposit outflows from traditional financial institutions. However, he said the industry had not presented facts supporting those claims during meetings tied to the legislation.
White House Reviews Ethics Rules and Bitcoin Reserve Plans
Witt also discussed ongoing talks surrounding conflict-of-interest provisions connected to the legislation. He said the administration is open to rules that apply broadly across government positions, from the president to congressional staff, while opposing measures targeting specific politicians or their relatives.
In addition, Witt stated that updates regarding the proposed U.S. Strategic Bitcoin Reserve could arrive “in the coming weeks.” According to him, federal agencies are currently auditing, centralizing, and strengthening custody arrangements for government-held crypto assets following President Donald Trump’s executive order.
Related: CLARITY Act Set for Senate Markup Next Week as Yield Dispute Clears
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