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omise

White House Advisor: Multiple differences in the "Clarity Act" are gradually being resolved, and the compromise plan for stablecoin yields is expected to be maintained

Patrick Witte, the Executive Director of the White House Digital Assets Presidential Advisory Committee, stated on Monday that substantive progress is being made in Senate negotiations surrounding the Clarity Act, with a compromise reached on the issue of stablecoin yields expected to hold, and the focus of negotiations has shifted to other unresolved topics.The issue of stablecoin yields was previously the biggest obstacle to advancing the bill. Banking lobbyists successfully persuaded some senators that providing yields similar to bank interest to stablecoin holders would threaten the traditional banking deposit base, causing the bill to reach an impasse. Witte stated, "We hope that the compromise reached will be durable and stable. Resolving this issue is a prerequisite for advancing other pending matters." Last week, the White House economic advisors released a report downplaying the risk concerns raised by the banking industry; in response, the American Bankers Association rebutted on Monday, claiming the White House's arguments were flawed.In addition to stablecoin yields, the bill also faces several disagreements, including illegal financial protection mechanisms in the DeFi space and a demand from Democrats to prohibit senior government officials (specifically targeting President Trump) from profiting from the crypto industry. Witte did not disclose which topics have reached consensus but indicated that negotiations have "made considerable progress behind the scenes," stating, "We are very close to comprehensively resolving these issues." The Clarity Act still needs to go through the Senate Banking Committee's markup review process before being submitted for a full Senate vote. Witte expressed optimism about reaching a final agreement, noting that many issues that previously seemed stuck have gradually been resolved.

The compromise proposal for the cryptocurrency market structure bill has sparked industry divisions, with Coinbase expressing dissatisfaction with the stablecoin yield provisions

This week, a compromise proposal regarding the yield section of the Clarity Act by U.S. Senators has sparked mixed reactions within the crypto industry. Coinbase has expressed dissatisfaction with the latest compromise text to the senator's staff but has not publicly stated opposition.The proposal was presented to stakeholders in the crypto industry on Monday, with some expressing dissatisfaction while others felt the outcome was better than expected. The proposal will instruct certain regulatory agencies to formulate rules to clarify the regulatory approach to yield-generating activities, but there are concerns that regulators may set subjective standards. Additionally, the text may limit companies' ability to tie rewards to the scale of stablecoin transactions.During this week's industry conference call, Coinbase had disagreements with other parties, with some companies believing that giving up certain stablecoin rewards is too costly, while others felt that losing the Clarity Act poses a greater risk to the overall legislative framework for the crypto industry. Previously, news related to this compromise proposal had impacted the market, with Circle's stock price dropping 20% on Tuesday and slightly rebounding on Wednesday.White House crypto advisor Patrick Witt criticized the related predictions on the X platform as "uninformed" and stated that "everything will be resolved." The final text is expected to be released this weekend or early next week.

Coinbase's Chief Policy Officer Responds to "White House Agreement Goals May Fall Through": Has Committed to Multiple Potential Compromise Solutions on Stablecoin Yield Issues

Coinbase Chief Policy Officer Faryar Shirzad posted on the X platform in response to "the White House's agreement goals may fall short." He stated that Coinbase and the company's CEO Brian Armstrong have been involved in negotiations for months and have committed to several potential compromise solutions. Coinbase's core goal has always been to protect the interests of the GENIUS Act and the general American public. He also thanked Patrick Witt, Executive Director of the President's Digital Asset Advisory Council, for his efforts in pushing for problem resolution and looks forward to the smooth implementation of the President's crypto agenda.According to senior journalist Sander Lutz from crypto media Decrypt, the White House originally hoped to reach an agreement on stablecoin yield issues before the weekend, but a banking industry insider directly involved in the negotiations stated that this goal would not be achieved. The current divide between the crypto industry and banking lobbyists regarding whether stablecoins should generate yield remains significant. This controversy has become a major obstacle to advancing the crypto market structure bill and directly points to Coinbase CEO's insistence that stablecoins should be able to generate yield for users.According to previous reports from ChainCatcher, David Sacks, the White House's crypto and AI director, stated that the crypto industry has made significant concessions regarding stablecoin yields, and banks should respond accordingly.
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