Trump's Crypto Advisor Says Stablecoin Yield Provision Compromise Reached, White House Aims to Pass the Clarity Act by July 4th

BlockBeats News, May 7th, White House Digital Asset Advisor Patrick Witt stated that the Trump administration is pushing Congress to pass the Digital Asset Market Clarity Act (Clarity Act) on the crypto market structure by July 4th, calling it the "best birthday present" for the U.S.'s 250th anniversary.

Witt revealed that the Senate Banking Committee is expected to advance the bill this month, with four workweeks in June for Senate voting, followed by submission for a House vote. He also mentioned that the previously contentious stablecoin yield provision has been compromised.

Under the latest proposal, the bill will prohibit stablecoin issuers from offering interest similar to bank deposits but will allow for reward mechanisms tied to consumer behavior. Witt stated that the proposal was formed through joint negotiation between the White House, banks, and the crypto industry, saying, "The crypto industry is not happy, and the banks are not happy either, but when both sides are almost unhappy, it means this is the right compromise."

Furthermore, the White House is pushing for the establishment of crypto conflict of interest rules applicable to all government officials, not just targeting President Trump or his family. Witt stated that he will not accept any "terms targeting specific political figures." Witt warned that if the U.S. fails to promptly establish a crypto regulatory framework, it may be forced to comply with rules set by other countries in the future, "and the worst would be for China to set these rules."