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 proceed with a markup. The compromise 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 endorsed the bill while expressing concerns over the broad prohibition framework, which extends beyond last year's GENIUS Act. Circle's Chief Strategy Officer, Dante Disparte, and Coinbase's CEO, Brian Armstrong, also supported the compromise. To comply with the new rules, companies will need to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' model, focusing on actual participation and usage rather than mere investment.