Crypto Industry and Banks Near Deal as Bill’s Odds Jump Above 60%

The crypto industry and banks are reportedly close to reaching a deal on the stablecoin yields provision, which has been a major obstacle for the CLARITY Act’s progress. The odds of Trump signing the bill into law this year have again climbed, providing a positive for the crypto market.

Crypto and Banks Reportedly Nearing A Deal On CLARITY Act

According to a Crypto In America report, Digital Chamber CEO Cody Carbone said that the crypto industry and banks are getting “closer and closer” to a deal and that he is confident they can reach a resolution in the next week. Both parties have, up until now, clashed over whether the crypto legislation should allow third-party crypto firms to distribute stablecoin rewards, with banks calling for a broad ban.

Crypto firms had already agreed to a compromise on a draft text put forward by the White House, which restricted the scope of these stablecoin rewards. Under the latest draft text of the CLARITY Act, crypto firms won’t be able to distribute rewards on balances and can only do so for certain transactions.

Banks have reportedly remained hesitant to reach a compromise, citing concerns that such a provision would not be sufficient to prevent deposit flight. However, as CoinGape reported, Senator Angela Alsobrooks, who had earlier proposed amendments to the crypto bill to curb this risk, recently noted that banks may have to make a compromise.

“I think I have to level set that all of us will probably walk away just a little bit unhappy,” she said. Meanwhile, Crypto In America noted that Senator Alsobrooks and Senator Thom Tillis remain key to the crypto bill’s progress. The bill is likely to advance once both senators are satisfied with the legislative language from both sides.

Tillis support could help the Senate Banking Committee advance the bill along party lines, while the bill could gain bipartisan support with Alsobrooks’ support. It is worth noting that other issues, such as DeFi and ethics, may need to be addressed before the bill progresses.

Odds of Trump Signing The Bill This Year Jump

The odds of Trump signing the CLARITY Act this year have again climbed amid reports that the crypto industry and banks are nearly reaching a deal. Polymarket data show a 61% chance that Trump will sign the bill into law this year, up from around 56% over the weekend.

Galaxy Digital’s Head of Research, Alex Thorn, recently commented on the possibility of the CLARITY Act passing this year. He stated that the odds of passage will become extremely low if the bill doesn’t pass the committee stage by April.

He further remarked that the crypto bill needs to hit the Senate floor by May, as floor time is running out with each passing day. Thorn also noted that stablecoin rewards may not be the final hurdle, as issues such as DeFi, developer protections, and ethics are simply in the background because of the stablecoin rewards issue.

The crypto market could get some clarity tomorrow on when the markup could hold, as Senate Banking Committee Chair Tim Scott will kick off the Digital Chamber’s DC Blockchain Summit in a fireside chat. The senator could provide an estimate of when the markup will occur, although progress still hinges on resolving these key hurdles.