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

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 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 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, welcomed the deal as a step in the right direction, stating that the lack of a clear legal framework is driving top talent and innovation away. The Crypto Council for Innovation also endorsed the bill, despite raising concerns that the new language extends the prohibition framework too far. The CEO of the Crypto Council for Innovation, Ji Hun Kim, urged the committee to advance the bill, emphasizing the importance of the US leading in the crypto space. Circle's Chief Strategy Officer, Dante Disparte, endorsed the deal without reservation, citing the growth of USDC in cross-border payments and other areas. Coinbase, which had a significant stake in the negotiations, also expressed support for the language, with CEO Brian Armstrong calling for the committee to proceed with the markup. 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, companies will need to restructure their rewards programs from a 'buy and hold' model to a 'buy and use' model, focusing on rewarding actual participation and usage rather than simply holding assets.