Crypto Industry Supports CLARITY Act Compromise on Yield, 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 compromise 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 tied to legitimate activities or transactions. The Blockchain Association's CEO, Summer Mersinger, praised the agreement 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 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, stating that the goal is to ensure the US leads in the crypto industry. Circle's Chief Strategy Officer, Dante Disparte, fully supported the compromise, citing the progress made in the CLARITY Act negotiations. Coinbase's CEO, Brian Armstrong, and Chief Legal Officer, Paul Grewal, also expressed support for the language, which preserves activity-based 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 the main 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.