"Last-minute talks to reconcile stablecoin interest dispute… optimism builds for April vote on the CLARITY Act"

Reports say expectations are rising that Congress will advance the “CLARITY Act,” a bill on the crypto-asset market structure, as a dispute over paying interest on stablecoins has entered a final-stage reconciliation process.

According to Crypto in America, a media outlet specializing in digital assets (cryptocurrency), a compromise on how to provide interest or rewards to stablecoin holders may emerge after recent discussions between Senate aides and the industry.

The report said the banking sector and the crypto industry have reviewed a recently revised compromise, but are refraining from disclosing specifics. Still, multiple industry sources were quoted as saying, “This time it’s closer to a workable solution,” signaling optimism that an agreement can be reached.

The dispute stems from concerns that paying interest on stablecoins could trigger deposit outflows from banks. Banks are wary of a weakened deposit base, while the crypto industry argues that an interest-bearing structure is necessary to remain competitive.

The latest talks are follow-up discussions that continued after industry pushback against a draft presented in late March. At the time, some firms opposed the draft, arguing it could hinder market competition.

Market participants say that if the interest issue is resolved to some extent, discussions on remaining issues—such as decentralized finance (DeFi) and token classification—are likely to gain momentum. The Senate Banking Committee is said to be considering moving as soon as late this month to begin the process for a vote on the legislation.

However, a pending study by the White House Council of Economic Advisers on stablecoin interest has not yet been released, leaving a key variable. The report is expected to analyze the impact on bank deposit outflows and the lending market, and could influence policy decisions.