Crypto Industry Supports CLARITY Act Compromise, 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 text prohibits crypto firms from paying interest on stablecoin balances in a manner similar to bank deposits, but allows rewards programs tied to legitimate activities or transactions. The agreement has been met with support from industry leaders, including the Blockchain Association and Circle, who see it as a step in the right direction for the US to lead in the crypto space. However, the Crypto Council for Innovation has raised concerns that the new language extends the prohibition framework too far, and has urged the committee to advance the bill despite these concerns.