Crypto Industry Supports CLARITY Act Compromise on Yield, 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, crypto trade groups called for the Senate Banking Committee to proceed with a markup. The compromise text prohibits crypto firms from offering interest or yield on stablecoin balances in a manner similar to traditional bank deposits. However, it does allow for rewards programs linked to legitimate activities or transactions. The Blockchain Association's CEO, Summer Mersinger, welcomed the deal as a step in the right direction, stating that the lack of a clear legal framework poses a risk of driving top talent, capital, and innovative companies away. The Crypto Council for Innovation also endorsed the bill, while 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, emphasizing the importance of the US leading 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.