CLARITY Act Breakthrough Imminent: Crypto Market Recovers Following Compromise on Stablecoin Yields

The crypto market is showing clear signs of recovery Friday morning as a breakthrough in the CLARITY Act appears imminent. Bitcoin is trading up 1.4 percent at around $67,000, moving away from its daily low of $65,600.

The positive sentiment stems from progress on comprehensive U.S. digital asset legislation. After weeks of deadlock due to fundamental disagreements between the crypto industry and the traditional banking sector, the White House convened the parties for the third time in two weeks. The central point of contention: the treatment of stablecoin yields.

According to Fox reporter Eleanor Terrett, the crypto lobby is showing willingness to compromise and is largely forgoing yields on idle balances. In return, certain rewards programs are to be preserved. Coinbase CEO Brian Armstrong confirmed that premium users could earn Bitcoin yields on USDC deposits in the future.

Prediction platform Polymarket sees an 82 percent probability of the bill being signed in 2026. The White House has set March 1 as the deadline to resume the legislative process. Investors are also monitoring today's U.S. economic data on PCE inflation and GDP, as well as ongoing geopolitical tensions in the Middle East.