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

Within hours of US Senators Thom Tillis and Angela Alsobrooks releasing a compromise text on stablecoin yield in the Digital Asset Market Clarity Act, crypto trade groups called for a markup of key market structure legislation. The text prohibits crypto firms from paying interest or yield on stablecoin balances in a manner equivalent to a bank deposit, but allows rewards programs tied to 'bona fide activities or transactions'. The Blockchain Association CEO, Summer Mersinger, praised the deal as a step in the right direction, while the Crypto Council for Innovation endorsed the bill despite raising concerns about the broad prohibition. The CEO of Crypto Council for Innovation, Ji Hun Kim, urged the committee to advance the bill, stating that the US should lead in crypto. Circle Chief Strategy Officer Dante Disparte and Coinbase CEO Brian Armstrong also endorsed the deal, with Disparte pointing to the growth of USDC in cross-border payments and capital markets. The Senate Banking Committee had postponed an earlier CLARITY Act markup in January, but the yield language has been the major obstacle. To comply with the new rules, firms will need to restructure their rewards programs from a 'buy and hold' to a 'buy and use' model.