Crypto Industry Supports CLARITY Act Compromise on Stablecoin 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, cryptocurrency trade groups called for the Senate Banking Committee to mark up the Digital Asset Market Clarity Act, a key piece of legislation. The proposed 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 linked 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 also endorsed the bill, despite expressing concerns that the new language extends the prohibition framework too far. Circle's Chief Strategy Officer, Dante Disparte, and Coinbase's CEO, Brian Armstrong, both welcomed the compromise, with Disparte noting that it marks significant progress in the CLARITY Act negotiations and Armstrong urging the committee to move forward with the markup. To comply with the new regulations, firms will need to restructure their rewards programs, adopting a 'buy and use' model instead of the current 'buy and hold' approach.