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

Within hours of the release of a compromise text by U.S. Senators Thom Tillis and Angela Alsobrooks 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 paying interest or yield on stablecoin balances in a manner similar to a bank deposit, but carves out exceptions for rewards programs tied to genuine activities or transactions. The agreement directs Treasury and the CFTC to establish rules within a year of enactment. 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 endorsed the bill while expressing concerns, with CEO Ji Hun Kim noting that the new language extends the prohibition framework beyond last year's GENIUS Act. Kim urged the committee to advance the bill, emphasizing the need for the U.S. to lead in the crypto space. Circle's Chief Strategy Officer, Dante Disparte, also endorsed the deal, citing the growth of USDC in cross-border payments and other areas. Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal expressed support for the language, which preserves activity-based rewards tied to real participation on crypto platforms. The Senate Banking Committee had previously postponed a markup of the CLARITY Act in January, but the yield language has been a major obstacle. To comply with the new rules, firms will need to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' model.