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

Within hours of the release of a compromise text by U.S. Senators Thom Tillis and Angela Alsobrooks on stablecoin yield in the Digital Asset Market Clarity Act, crypto trade groups called for the Senate Banking Committee to move forward with the 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. However, it does allow for rewards programs tied to genuine activities or transactions. The Blockchain Association's 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 raising concerns that the new language extends the prohibition framework too far. The CEO of the Crypto Council for Innovation, Ji Hun Kim, urged the committee to advance the bill, stating that the goal is to ensure the U.S. leads in the crypto space. Circle's Chief Strategy Officer, Dante Disparte, and Coinbase's CEO, Brian Armstrong, also expressed support for the compromise. The proposed 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.