Crypto Industry Supports CLARITY Act Yield Compromise, Urges Senate Banking Committee to Advance Legislation

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 the key market structure legislation. The compromise text prohibits crypto firms from paying interest or yield on stablecoin balances in a manner similar to a bank deposit, while allowing rewards programs tied to legitimate activities or transactions. The Blockchain Association's CEO, Summer Mersinger, welcomed the deal as a step in the right direction, stating that a clear legal framework is necessary to prevent top talent and innovative companies from relocating. The Crypto Council for Innovation endorsed the bill but expressed concerns, with CEO Ji Hun Kim noting that the new language extends the prohibition framework beyond last year's GENIUS Act. Kim urged the committee to advance the bill, emphasizing the importance of US leadership in the crypto industry. Circle's Chief Strategy Officer, Dante Disparte, also endorsed the deal, citing the growth of USDC in cross-border payments and other areas. Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal 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 a major obstacle. To comply with the new rules, firms will need to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' model.