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

Within hours of the release of a compromise text by US Senators Thom Tillis and Angela Alsobrooks, crypto trade groups called for a markup of key market structure legislation. The text prohibits crypto firms from offering interest or yield on stablecoin balances in a manner equivalent to a bank deposit, while exempting 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 US needs to lead 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 agreement requires firms to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' model, which is expected to have significant implications for the industry.