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 proposed text prohibits crypto firms from offering interest or yield on stablecoin balances in a manner similar to traditional bank deposits, but carves out exceptions for rewards programs tied to legitimate activities or transactions. The Blockchain Association's CEO, Summer Mersinger, expressed support for the compromise, stating that it is a step in the right direction. However, the Crypto Council for Innovation raised concerns that the new language extends the prohibition framework too far, applying to all digital asset market participants. Despite these concerns, the council 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 endorsed the compromise, with Disparte noting that it marks meaningful progress in the CLARITY Act negotiations. 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 regulations, firms will need to restructure their rewards programs to focus on 'buy and use' models rather than 'buy and hold' approaches.