Crypto Industry Supports CLARITY Act Compromise, Urges Senate Banking Committee to Move Forward

Within hours of the release of a compromise text by U.S. Senators Thom Tillis and Angela Alsobrooks on stablecoin yield in the Digital Asset Market Clarity Act, crypto trade groups called for a markup of the key market structure legislation. The text prohibits crypto firms from offering interest or yield on stablecoin balances in a manner similar to a bank deposit, while allowing rewards programs tied to legitimate activities or transactions. The Treasury and the CFTC have been directed to create rules within a year of the bill's enactment. The Blockchain Association's CEO, Summer Mersinger, praised the deal as a step in the right direction, emphasizing the need for a clear legal framework to prevent top talent and innovative companies from relocating. The Crypto Council for Innovation endorsed the bill but expressed concerns, with CEO Ji Hun Kim stating that the new language extends the prohibition framework beyond last year's GENIUS Act. Kim urged the committee to advance the bill, emphasizing the importance of the U.S. leading in the crypto space. Circle's Chief Strategy Officer, Dante Disparte, also endorsed the deal, citing the progress made in the CLARITY Act negotiations and the potential for the U.S. to lead in digital assets. Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal also supported the language, which preserves activity-based rewards tied to real participation on crypto platforms. The Senate Banking Committee had previously postponed a markup of the CLARITY Act in January, and while other negotiation points remain unresolved, the yield language has been a significant obstacle. To comply with the new rules, companies will need to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' one.