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 U.S. 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 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 expressing 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 supported the compromise. The proposed agreement necessitates firms to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' model to comply with the transaction requirements.