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

Following 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 swiftly 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 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 expressing concerns that the new language extends the prohibition framework too far. CEO Ji Hun Kim urged the committee to advance the bill, stating that the goal is to ensure the US leads in the crypto space. Other industry leaders, including Circle's Chief Strategy Officer Dante Disparte and Coinbase's CEO Brian Armstrong, also supported the compromise. The 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.