Crypto Industry Supports Compromise on CLARITY Act, Urges Senate Banking Committee to Proceed with Markup

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 the Senate Banking Committee to proceed with a markup. The proposed 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, and tasks the Treasury and CFTC with developing rules within a year of enactment. The Blockchain Association's CEO, Summer Mersinger, viewed the deal as a positive step, stating that the absence of a clear legal framework poses a risk of driving top talent, capital, and innovative companies away. The Crypto Council for Innovation endorsed the bill while expressing concerns, with CEO Ji Hun Kim noting that the new language extends the prohibition framework beyond the previous year's GENIUS Act. Kim urged the committee to advance the bill, emphasizing the importance of ensuring the US leads in the crypto space. 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, and while other negotiation points remain unresolved, the yield language has been a significant obstacle. To comply with the proposed rules, firms will need to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' model.