Crypto Industry Supports CLARITY Act Compromise, Urges Senate Banking Committee to Proceed with Markup

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 a markup of the key market structure legislation. The compromise text prohibits crypto firms from offering interest or yield on stablecoin balances in a manner equivalent to a bank deposit, while allowing rewards programs tied to legitimate activities or transactions. The Treasury and CFTC have been directed to establish rules within a year of enactment. Blockchain Association CEO Summer Mersinger welcomed the deal as a positive step, 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 but expressed concerns that the new language extends the prohibition framework too far. CEO Ji Hun Kim urged the committee to advance the bill, emphasizing the need for the US to lead in the crypto space. Circle Chief Strategy Officer Dante Disparte and Coinbase CEO Brian Armstrong also endorsed the deal, with Disparte noting that the compromise marks significant progress in the CLARITY Act negotiations. To comply with the new regulations, firms will need to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' model, focusing on activity-based rewards tied to real participation on crypto platforms.