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 on stablecoin yield in the Digital Asset Market Clarity Act, crypto trade groups called for the Senate Banking Committee to move forward with the markup. The proposed 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 genuine activities or transactions. The Blockchain Association's CEO, Summer Mersinger, welcomed the deal as a step in the right direction, emphasizing the need for a clear legal framework to prevent top talent and innovative companies from relocating elsewhere. The Crypto Council for Innovation also endorsed the bill, despite raising concerns that the new language extends the prohibition framework too far. Circle's Chief Strategy Officer, Dante Disparte, and Coinbase's CEO, Brian Armstrong, expressed their support for the compromise, with Disparte noting that it marks meaningful progress in the CLARITY Act negotiations and Armstrong urging the committee to move forward with the markup. The proposed 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.