Crypto Industry Supports CLARITY Act Compromise on Yield, Urges Senate Banking Committee to Proceed with Markup

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 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 allows for rewards programs tied to genuine activities or transactions. The Blockchain Association's CEO, Summer Mersinger, welcomed 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 also endorsed the bill, while expressing concerns that the new language extends the prohibition framework too far. Despite these concerns, the council urged the Senate Banking Committee to advance the bill, with CEO Ji Hun Kim stating that the goal is to ensure the US leads in the crypto industry. Other industry leaders, including Circle's Chief Strategy Officer Dante Disparte and Coinbase's CEO Brian Armstrong, also expressed support for the compromise. The 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.