Crypto Industry Supports Compromise on CLARITY Act, 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, cryptocurrency trade groups called for the Senate Banking Committee to move forward with the markup of the key market structure legislation. The proposed text prohibits crypto firms from offering interest or yield on stablecoin balances in a manner similar to traditional bank deposits, but carves out exceptions for rewards programs tied to legitimate activities or transactions. The Blockchain Association's CEO, Summer Mersinger, praised the deal as a step in the right direction, stating that the lack of a clear legal framework is driving top talent, capital, and innovative companies away. 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, saying that the goal is to ensure the US leads in the crypto space. Other industry leaders, such as 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 would incentivize actual usage of cryptocurrencies rather than just holding them.