Crypto Industry Supports CLARITY Act Compromise, Urges Senate Banking Committee to Advance Markup

Within hours of US Senators Thom Tillis and Angela Alsobrooks releasing a compromise 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 carves out exceptions for rewards programs tied to legitimate activities or transactions. The Blockchain Association's CEO, Summer Mersinger, praised the deal as a step forward, 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 that the new language extends the prohibition framework too far. Circle's Chief Strategy Officer, Dante Disparte, and Coinbase's CEO, Brian Armstrong, also endorsed the deal, with Disparte noting that it marks meaningful progress in the CLARITY Act negotiations and Armstrong urging the committee to move forward with the markup. The proposed agreement requires firms to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' one, which has been a major sticking point in the negotiations.