Crypto Industry Supports CLARITY Act Compromise on Yield, 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 compromise text prohibits crypto firms from offering interest or yield on stablecoin balances in a manner similar to traditional bank deposits, but it does allow for rewards programs tied to legitimate activities or transactions. The Treasury and the CFTC have been directed to establish rules within a year of the bill's enactment. Blockchain Association CEO Summer Mersinger welcomed the agreement, stating that it is a step in the right direction. The Crypto Council for Innovation also endorsed the bill, although it expressed concerns about the broad prohibition. CEO Ji Hun Kim urged the committee to advance the bill, emphasizing the importance of the U.S. leading in the crypto space. Circle Chief Strategy Officer Dante Disparte and Coinbase CEO Brian Armstrong also expressed support for the compromise. To comply with the new regulations, firms will need to adjust their rewards programs from a 'buy and hold' model to a 'buy and use' model, focusing on actual participation and usage rather than investment.