US Crypto Industry Backs Stablecoin Yield Compromise in CLARITY Act

The US crypto industry is calling for an immediate markup of the Digital Asset Market Clarity (CLARITY) Act after Senators Thom Tillis and Angela Alsobrooks reached a compromise on the contentious issue of stablecoin yields. The agreement addresses the primary obstacle hindering the legislation by prohibiting crypto firms from offering interest on stablecoin balances in a manner functionally equivalent to traditional bank deposits. To balance these restrictions, the text maintains a carve-out for rewards programs linked to "bona fide activities or transactions," allowing platforms to incentivize actual utility over passive holding. Under the proposed framework, the Treasury and the CFTC would be tasked with establishing specific guidelines within one year of the bill's enactment. The new language is notably broader than previous proposals, such as the GENIUS Act, as it applies to all digital asset market participants rather than just issuers. While the Crypto Council for Innovation expressed disagreement with assertions regarding "deposit flight" from traditional banks, it nonetheless urged the Senate Banking Committee to advance the bill to ensure the United States remains a leader in digital asset innovation. Leading industry players, including Circle and Coinbase, have expressed strong support for the text. Coinbase leadership noted that the language preserves activity-based rewards, a key demand from the banking lobby. To comply with the new standards, crypto firms will likely need to restructure their incentive models, shifting from "buy and hold" yield strategies to "buy and use" frameworks that prioritize transactional activity.