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

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 the Senate Banking Committee to move forward with the legislation. The compromise text prohibits crypto firms from offering interest or yield on stablecoin balances that are equivalent to traditional bank deposits. However, it allows for rewards programs tied to genuine activities or transactions. The Blockchain Association's CEO, Summer Mersinger, welcomed the deal as a step in the right direction, stating that a clear legal framework is necessary to prevent top talent and innovative companies from relocating elsewhere. The Crypto Council for Innovation also endorsed the bill but expressed concerns that the new language extends the prohibition framework too far. Despite these concerns, the council urged the committee to advance the bill, emphasizing the importance of US leadership in the crypto industry. Circle's Chief Strategy Officer, Dante Disparte, and Coinbase's CEO, Brian Armstrong, also supported the compromise. The agreement requires firms to restructure their rewards programs to comply with the new 'buy and use' model, which prioritizes real participation on crypto platforms over passive holding.