US Crypto Industry Supports Compromise on CLARITY Act, Urges Senate to Move Forward

Following the release of a compromise text by US Senators Thom Tillis and Angela Alsobrooks on the stablecoin yield aspect of the Digital Asset Market Clarity Act, crypto trade groups swiftly called for the Senate Banking Committee to proceed with a markup. The proposed agreement prohibits crypto firms from offering interest on stablecoin balances in a manner similar to traditional bank deposits, but allows for rewards tied to genuine activities or transactions. The Blockchain Association's CEO, Summer Mersinger, welcomed the deal as a positive step, emphasizing the need for a clear legal framework to prevent the loss of talent, capital, and innovation to other regions. The Crypto Council for Innovation also endorsed the bill, despite expressing concerns about the extended prohibition framework, which now applies to all digital asset market participants, not just issuers. Circle's Chief Strategy Officer, Dante Disparte, and Coinbase's CEO, Brian Armstrong, also supported the compromise, highlighting its significance in the CLARITY Act negotiations and the potential for the US to lead in the crypto space. To comply with the new regulations, companies will need to restructure their rewards programs from a 'buy and hold' approach to a 'buy and use' model, focusing on rewards for actual participation and usage on their platforms.