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

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 key market structure legislation. The text prohibits crypto firms from paying interest or yield on stablecoin balances in a manner equivalent to a bank deposit, while allowing rewards programs tied to genuine activities or transactions. The Blockchain Association CEO 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 endorsed the bill but expressed concerns over the extended prohibition framework, which goes beyond last year's GENIUS Act. Despite these concerns, the council urged the committee to advance the bill, stating that the US should lead in the crypto space. Circle's Chief Strategy Officer and Coinbase's CEO also endorsed the deal, with the latter posting 'Mark it up' after the text was released. The Senate Banking Committee had previously postponed a CLARITY Act markup in January, but the yield language has been the major obstacle. To comply with the new rules, firms will need to restructure their rewards programs from a 'buy and hold' to a 'buy and use' model.