Following last week's stablecoin yield compromise by Senators Tillis and Alsobrooks, crypto stocks rallied and markup expectations grew for the Digital Asset Market Clarity Act. Circle shares surged 18% amid optimism for Senate Banking Committee action the week of May 11, despite banking pushback.
Building on the compromise text released Friday by Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.)—which bans stablecoin yields on idle balances akin to bank deposits while allowing rewards for transactions, payments, or platform use—momentum is building for the Digital Asset Market Clarity Act. Regulators will define permitted activities and disclosures if enacted.
The Senate Banking Committee has yet to schedule a markup officially, but a vote the week of May 11, 2026, is increasingly likely, potentially teeing up full Senate debate in late May or June. Galaxy Digital's Alex Thorn hailed it as a 'positive signal' for a near-term vote, though House reconciliation looms.
Sen. Cynthia Lummis cautioned that stalling until next year could push comprehensive crypto rules to 2030. Banks, via the American Bankers Association, are intensifying opposition, pressing the OCC to block third-party yield loopholes that threaten deposits and lending.
Crypto executives celebrated: Coinbase policy chief Faryar Shirzad said it protects 'rewards based on real usage'; 10x Research's Markus Thielen noted it clears the final hurdle, with markets betting on winners like Circle. Monday saw Circle +18%, Coinbase +7%, and bitcoin exceeding $80,000.
