Crypto Industry Supports Compromise on CLARITY Act, Urges Senate 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 the Senate Banking Committee to move forward with the markup of the key market structure 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, welcomed the deal as a step in the right direction, stating that the lack of a clear legal framework is driving top talent and innovative companies away. The Crypto Council for Innovation also endorsed the bill, despite raising concerns that the new language extends the prohibition framework too far. The CEO of the Crypto Council for Innovation, Ji Hun Kim, urged the committee to advance the bill, emphasizing the importance of the US leading in the crypto space. Other industry leaders, including Circle's Chief Strategy Officer Dante Disparte and Coinbase's CEO Brian Armstrong, also expressed their support for the compromise. The proposed agreement requires firms to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' model, which is expected to have significant implications for the industry.