Crypto Industry Supports Compromise on CLARITY Act Yield, Urges Senate Banking Committee 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 a markup of key market structure legislation. The new 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 tied to legitimate activities or transactions. The Blockchain Association CEO, Summer Mersinger, praised the deal 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 also endorsed the bill, despite expressing concerns that the new language extends the prohibition framework too far. The CEO, Ji Hun Kim, urged the committee to advance the bill, stating that the goal is to ensure the US leads in the crypto industry. Circle Chief Strategy Officer Dante Disparte endorsed the deal without qualification, citing the growth of USDC in cross-border payments and other areas. Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal also expressed support for the language, which preserves activity-based rewards tied to real participation on crypto platforms. The Senate Banking Committee had previously postponed a markup of the CLARITY Act in January, but the yield language has been the main obstacle. To comply with the new regulations, firms will need to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' model.