Crypto Industry Supports Compromise on CLARITY Act, 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 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 in the right direction, stating that a clear legal framework is essential to prevent top talent and innovative companies from relocating elsewhere. The Crypto Council for Innovation endorsed the bill while expressing concerns that the new language extends the prohibition framework too far. Its CEO, Ji Hun Kim, urged the committee to advance the bill, emphasizing the importance of US leadership in the crypto industry. Circle's Chief Strategy Officer, Dante Disparte, and Coinbase's CEO, Brian Armstrong, also endorsed the deal. The agreement necessitates firms to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' one, which is expected to have significant implications for the industry.