Crypto Industry Supports Senate Compromise on CLARITY Act, Urges Markup

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 proposed text prohibits crypto firms from offering interest or yield on stablecoin balances in a manner similar to traditional bank deposits. However, it allows for rewards programs linked to genuine activities or transactions. The Blockchain Association's CEO, Summer Mersinger, welcomed the deal as a step forward, stating that a clear legal framework is essential to prevent top talent and innovative companies from relocating elsewhere. The Crypto Council for Innovation also endorsed the bill, despite expressing concerns over the extended prohibition framework. The council's CEO, Ji Hun Kim, urged the committee to advance the bill, emphasizing the importance of US leadership in the crypto space. Other industry leaders, including Circle's Chief Strategy Officer Dante Disparte and Coinbase's CEO Brian Armstrong, also supported the compromise. The new language requires firms to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' approach, which is expected to have significant implications for the industry.