Within hours of Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) releasing a compromise text on stablecoin yield, key crypto industry groups called for the Senate Banking Committee to markup the Digital Asset Market Clarity Act. The new text prohibits crypto firms from offering interest or yield on stablecoins in ways akin to bank deposits but allows rewards linked to genuine activities or transactions. It mandates that the Treasury and CFTC draft relevant rules within a year of enactment.
Summer Mersinger, CEO of Blockchain Association, praised the agreement as progress. “We commend Senators Tillis and Alsobrooks for their leadership in reaching this agreement,” she said. “Every day without a clear legal framework is an invitation for top-tier talent, capital, and innovative companies to locate elsewhere.”
Ji Hun Kim of Crypto Council for Innovation endorsed the bill but expressed concerns that it extends beyond last year’s GENIUS Act by applying to all digital asset market participants. On X, he wrote, “The text goes VERY FAR beyond” the previous act. Despite this, he urged Senate Banking to proceed with marking up the bill: “The time is now,” Kim stated, emphasizing U.S. leadership in crypto.
Dante Disparte of Circle, which issues USDC and EURC stablecoins, fully supported the compromise as a significant step forward. He highlighted USDC’s role in cross-border payments and capital markets, stating, “Today’s progress is an encouraging signal that the U.S. is choosing to lead.”
Coinbase, represented by CEO Brian Armstrong who urged marking up the bill, saw its interests most directly impacted. Paul Grewal, Coinbase’s Chief Legal Officer, noted that the agreement preserved activity-based rewards for genuine platform participation, aligning with bank lobby requests.
The Senate Banking Committee had previously postponed a markup of the CLARITY Act in January due to unresolved issues beyond yield language, which has been the main hurdle. Firms will need to shift their rewards programs from a “buy and hold” model to a “buy and use” approach to meet transaction-related requirements.