Senators Reach Stablecoin Yield Deal To Advance CLARITY Act

The deal potentially clears the path for a Senate Banking Committee markup that has been stalled since January.

Stablecoin News

Senators Thom Tillis and Angela Alsobrooks released final compromise language on May 2, resolving the stablecoin yield dispute that has blocked the CLARITY Act for months. The deal potentially clears the path for a Senate Banking Committee markup that has been stalled since January. Coinbase CEO Brian Armstrong

on X with three words: "Mark it up."

The compromise

as Section 404 of the bill. It bars covered parties from paying any interest or yield to US customers solely for holding stablecoins, or in any form functionally equivalent to interest on a bank deposit. Covered parties are defined as digital asset service providers and their affiliates, though permitted stablecoin issuers and registered foreign issuers are excluded, as both are already barred from paying direct interest under the GENIUS Act.

The prohibition does not extend to activity-based rewards tied to genuine platform usage. The SEC, CFTC, and Treasury Secretary are directed to jointly issue rules within one year defining a non-exhaustive list of permitted activities, expected to cover payments, transfers, market-making, staking, governance, and loyalty programs. In a concession to crypto firms, the bill allows activity-based rewards to be calculated by reference to a user's balance, duration, or tenure, so long as the reward is tied to qualifying activity.