The stablecoin fight is mostly done. DeFi rules are next. And according to White House Crypto Advisor Patrick Witt, a Senate vote might be closer than most expect. The CLARITY Act is now pushing through the Senate Banking Committee, which is the final major step before it can hit the Senate floor.
In a recent interview, Witt confirmed the bill has already cleared the Agriculture Committee and is now in its last big phase. A markup could happen within weeks, and if that goes through, the process moves to a floor vote, followed by reconciliation and then back to the House.
“I am cautiously optimistic. We’ve made a ton of progress over the past couple of months. This is a complicated piece of legislation, so it’s not surprising that it’s going to take a long time to close out the issues.”
The Stablecoin Fight Is Basically Over
One of the biggest roadblocks, stablecoin yield, is now largely resolved. Witt confirmed that both sides have reached a compromise and believe it will hold.
Most importantly, this is a win-win situation for stablecoins, removing a major layer of uncertainty around how yield-bearing assets will be treated. The issue had stalled the bill earlier this year, but with it out of the way, progress has picked up. Final draft text is now being prepared after feedback from banks, crypto firms, and policymakers.
Focus Shifts to DeFi and Developers
With stablecoins sorted, lawmakers are now focusing on DeFi and developer-related concerns. These include how decentralized platforms operate and how developers are treated under regulation. Witt noted that progress here has been steady behind the scenes, with several issues already resolved and only a few left to finalize.
Banks vs Stablecoins — What the Data Says
Banks have been worried about losing deposits, but research suggests otherwise. Witt said that funds don’t leave the system; they simply move within it, since stablecoin reserves still sit in banks.
He further added that smaller banks may actually benefit by offering stablecoin products and attracting new users.
What Happens Next for $XRP and $RLUSD
Witt expects the bill to move out of the Banking Committee soon and potentially reach the Senate floor within weeks.
If that happens, experts say it could be a turning point for $XRP, which has faced long regulatory uncertainty. Clear rules could help it move beyond speculation and play a bigger role in real-world financial use cases, especially payments, while also opening the door for $RLUSD to scale.