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

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 key market structure legislation. The text prohibits crypto firms from paying interest or yield on stablecoin balances in a manner similar to bank deposits, while exempting rewards programs tied to genuine activities or transactions. The Blockchain Association CEO praised 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. The Crypto Council for Innovation also endorsed the bill, despite expressing concerns that the new language extends the prohibition framework too far. The CEO of the Crypto Council for Innovation urged the committee to advance the bill, stating that the goal is to ensure the US leads in crypto. Circle's Chief Strategy Officer endorsed the deal, citing the growth of USDC in cross-border payments and other areas. Coinbase's CEO and Chief Legal Officer also expressed support for the language, which preserves activity-based rewards. The Senate Banking Committee had previously postponed a markup of the CLARITY Act, 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' one.