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 US 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 traditional bank deposits. However, it does allow for rewards programs tied to genuine activities or transactions. The Blockchain Association's CEO, Summer Mersinger, praised the agreement as a step in the right direction, emphasizing the need for a clear legal framework to prevent top talent and innovative companies from relocating elsewhere. The Crypto Council for Innovation endorsed the bill while expressing concerns about the extended prohibition framework. Its CEO, Ji Hun Kim, urged the committee to advance the bill, stating that the US should lead in the crypto space. Circle's Chief Strategy Officer, Dante Disparte, also endorsed the deal, citing the growth of USDC in cross-border payments and other areas. Coinbase's CEO, Brian Armstrong, and Chief Legal Officer, Paul Grewal, supported the language, which preserves activity-based rewards tied to real participation on crypto platforms. The Senate Banking Committee had postponed an earlier markup in January, but the yield language has been a significant obstacle. To comply with the new regulations, firms will need to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' one.