Crypto Industry Supports CLARITY Act Compromise on Yield, Urges Senate Banking Committee to Move Forward

Within hours of US Senators Thom Tillis and Angela Alsobrooks releasing a compromise text on stablecoin yield in the Digital Asset Market Clarity Act, crypto trade groups called for the Senate Banking Committee to move forward with the markup. The proposed legislation bars cryptocurrency firms from paying interest on stablecoin balances in a manner similar to traditional bank deposits. However, it allows for rewards programs linked to genuine activities or transactions. The Blockchain Association's CEO, Summer Mersinger, welcomed the deal as a positive step, 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. Circle's Chief Strategy Officer, Dante Disparte, fully supported the compromise, citing the growth of USDC in cross-border payments and other areas. Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal also expressed support, noting that the language preserves rewards tied to real participation on crypto platforms. 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 from a 'buy and hold' model to a 'buy and use' approach.