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

Within hours of US Senators Thom Tillis and Angela Alsobrooks releasing a compromise on stablecoin yield in the Digital Asset Market Clarity Act, crypto trade groups called for a markup of the key legislation. The compromise 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 legitimate activities or transactions. The Blockchain Association's CEO, Summer Mersinger, welcomed the deal as a positive step, stating that a clear legal framework is essential to prevent top talent and innovative companies from relocating. The Crypto Council for Innovation endorsed the bill but expressed concerns over the extended prohibition framework. 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' model, which is expected to drive actual participation on crypto platforms.