According to the latest newsletter from Crypto in America and Eleanor Terrett, a decisive week for the U.S. crypto market begins today on Capitol Hill. Representatives of the digital asset industry and the banking sector have been invited to the Senate to review the closed-door text of a compromise agreement on stablecoin regulation.
As reported by Crypto in America, the presidential administration has reached a preliminary agreement with Senators Thom Tillis and Angela Alsobrooks. Based on the key details known as of March 23, here are the three pillars of the current deal:
- The "banking language" purge: The bill will introduce a strict ban on traditional financial terminology. Senator Cynthia Lummis confirmed that any wording resembling classical banking products — such as "deposits" or "interest" — has been scrubbed from the text. Consequently, the accrual of yield on idle stablecoin balances is expected to face a total legislative ban.
- A shift in economic sentiment: The White House Council of Economic Advisers has finalized its study on stablecoins' impact on banking liquidity. Early leaks suggest the findings are more favorable for the crypto industry than critics anticipated, potentially debunking the "deposit flight" narrative pushed by traditional banks.
- The review schedule: Today, key crypto trade associations are meeting with the Senate Banking Committee for a first look at the language. On Tuesday, the floor turns to banking sector representatives to voice their final concerns before the Easter recess.
Will Ripple join final cut?
Although the nominal list of participants in today’s closed meetings has not been disclosed, Ripple’s participation in the Clarity Act discussions is considered virtually guaranteed. The company is one of the most active lobbyists in Washington and is represented in key associations such as the Blockchain Association, the Crypto Council for Innovation and the Chamber of Digital Commerce.
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Senate Banking Committee leader Tim Scott is aiming to hold a vote as early as April; however, lawmakers still need to finalize sections related to DeFi and token classification. Very little time remains for amendments, as Congress goes on spring break this coming Friday.
