U.S. Senators Thom Tillis and Angela Alsobrooks released compromise text Friday for the CLARITY Act, addressing stablecoin yields as the final major hurdle in the crypto market structure bill. The agreement bans yields equivalent to bank deposits but allows rewards for bona fide activities. Crypto industry leaders quickly endorsed it and urged the Senate Banking Committee to schedule a markup.
Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) unveiled the compromise on stablecoin yield provisions in the Digital Asset Market Clarity Act, or CLARITY Act, on Friday. The text prohibits crypto firms from paying interest or yield on stablecoin balances in a manner economically or functionally equivalent to a bank deposit. It permits rewards programs linked to bona fide activities or transactions, with Treasury and the CFTC directed to draft rules within a year of enactment if the bill passes. Firms must shift reward programs from a 'buy and hold' to a 'buy and use' model to comply. The Senate Banking Committee had postponed a prior markup in January, with this yield issue as the main obstacle, though other points remain unresolved. Crypto trade groups, including Coinbase and Circle, backed the deal immediately. Blockchain Association CEO Summer Mersinger said, 'We commend Senators Tillis and Alsobrooks for their leadership in reaching this agreement. Every day without a clear legal framework is an invitation for top-tier talent, capital, and innovative companies to locate elsewhere.' Circle Chief Strategy Officer Dante Disparte called it 'meaningful progress,' adding, 'The United States faces a clear choice in digital assets: lead or be led.' Coinbase CEO Brian Armstrong posted 'Mark it up,' while Chief Legal Officer Paul Grewal noted the language preserves activity-based rewards tied to real participation on crypto platforms. The Crypto Council for Innovation endorsed advancing the bill despite concerns that the prohibition extends beyond last year's GENIUS Act to all digital asset participants. CEO Ji Hun Kim wrote on X, 'The north star is to ensure that the U.S. can lead on crypto—this is the future. We respectfully ask Senate Banking to move to mark up.' Galaxy Digital's Alex Thorn expects the committee to schedule markup imminently, possibly the week of May 11, though banking opposition may intensify.
