The newly proposed Digital Asset Market Clarity Act text, released Friday, outlines a framework that would prohibit stablecoin yield as part of crypto market legislation. The agreement, brokered by U.S. Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), bars stablecoin issuers from providing yields based solely on holding reserves. It emphasizes the crucial role of depository institutions in supporting the American economy, suggesting that similar services from stablecoin issuers could undermine these institutions.
This agreement signals progress towards a Senate Banking Committee hearing, which is essential for advancing the legislation further. However, other negotiation aspects remain unresolved publicly.
Coinbase CEO Brian Armstrong expressed optimism on social media platform X about this development, noting Coinbase’s central role in discussions and its potential losses from stablecoin yield restrictions. Paul Grewal, Coinbase’s chief legal officer, highlighted that the language “preserves activity-based rewards tied to real participation on crypto platforms and networks,” aligning with bank lobbyists’ desires, thus not serving as grounds for objection.
The legal text specifies: “No covered party shall, directly or indirectly, pay any form of interest on yield (whether in cash, tokens, or other consideration) to a restricted recipient — (A) solely in connection with the holding of such restricted recipient’s payment stablecoins; or (B) on a payment stablecoin balance in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit.” However, it allows incentives for “bona fide activities or bona fide transactions” differing from yields on bank deposits.
Senators Alsobrooks and Tillis have been refining these details after a Senate Banking Committee markup delay in January. Since then, bank lobbyists and crypto representatives have contributed to discussions, including White House-hosted sessions. In March, it was reported that lawmakers agreed to prevent yield resembling deposit interest while permitting non-competing rewards programs.
Cody Carbone, CEO of the Digital Chamber, welcomed the public release of stablecoin yield language as a crucial step toward resolving remaining issues for a Senate Banking Committee markup. He emphasized continued advocacy for leveraging rewards to enhance consumer utility and foster competition and innovation in the digital asset sector.
UPDATE (May 1, 2026, 21:54 UTC): Includes comments from Coinbase executives.