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 proposed text prohibits crypto firms from offering interest or yield on stablecoin balances in a manner similar to bank deposits, while allowing rewards programs linked to genuine activities or transactions. The 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 over the extended prohibition framework, which goes beyond last year's GENIUS Act. Despite these concerns, the Council urged the committee to advance the bill, emphasizing the need for the U.S. to lead in the crypto space. Circle Chief Strategy Officer Dante Disparte also endorsed the deal, citing the progress made in the CLARITY Act negotiations and the potential for the U.S. to take a leading role in digital assets. Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal supported the language, which preserves activity-based rewards tied to real participation on crypto platforms. 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' one, focusing on transaction-based incentives.