Discussions surrounding the United States' leading cryptocurrency legislative initiative, the Digital Asset Market Clarity Act, continue with limited progress, according to participants. On Thursday, Republican members of the Senate Banking Committee met with White House crypto advisor Patrick Witt in Washington to deliberate on outstanding matters concerning the bill, with a particular focus on the regulatory framework for stablecoin yield programs.
The meeting included Senators Cynthia Lummis, Tim Thillis, and Tim Scott. The revised legislative text, originally slated for submission to the White House on Thursday, saw its discussions extend beyond the scheduled timeframe.
Senator Lummis described the negotiations as being in a "delicate stage," but noted that the meeting yielded new approaches that had not been previously explored. She indicated that the current work has shifted from finalizing text to communicating with stakeholders.
Stablecoin Yield Programs Emerge as Core Negotiation Point
During Thursday's closed-door session, senators urged Witt to publicly release a report from the White House's Office of Economic Analysis that examines stablecoin yields and their impact on bank deposits. While some lawmakers reportedly reviewed the document, it has not yet been made public.
Lummis suggested that stablecoin incentive programs could still be incorporated into the bill's final draft if they avoid terminology associated with savings products or interest-bearing accounts. She likened such programs to credit card loyalty programs rather than bank interest.
Senator Tim Scott stated at the Washington Blockchain Summit on Tuesday that he anticipates a stablecoin yield framework to be released soon and expressed gratitude to Lummis, Angela Alsobrooks, and Tim Tillis for their efforts in advancing the discussions.
Potential Integration with Housing Reform Bill
Senate Republican leadership is evaluating the strategic inclusion of community bank deregulation provisions within the crypto bill as a means to enhance its chances of passage. This move would combine the Digital Asset Market Clarity Act with housing policy reforms, aiming to advance two distinct legislative agendas simultaneously.
The Senate approved its housing measures earlier this month, while House Republicans have put forth their own alternative. Some senators believe that merging these issues could help propel both forward.
However, it remains uncertain whether House Republicans would accept such an integrated approach.
Democratic lawmakers have also presented their own demands. They seek provisions to prohibit senior government officials and members of Congress from profiting from personal cryptocurrency investments—a demand primarily targeting President Trump. Additionally, they require the confirmation of Democratic appointees to the Commodity Futures Trading Commission (CFTC) before the agency drafts new cryptocurrency regulations.