TLDR
- Senate negotiators reached a deal to restrict stablecoin yield rewards before the CLARITY Act markup.
- The text targets rewards that resemble bank deposit interest or yield for users.
- Regulators would create disclosure rules and define allowed stablecoin reward activity under the deal.
- The agreement responds to banking concerns left open by the GENIUS Act stablecoin law.
- The CLARITY Act still faces talks on tokenization, DeFi, and software developer safeguards.
A Senate deal on stablecoin rewards has changed the debate around the CLARITY Act. The agreement targets yield payments that act like bank deposit interest. It comes as lawmakers prepare for a possible markup in May.
Senate Deal Targets Stablecoin Rewards
Sens. Thom Tillis and Angela Alsobrooks have reached a deal on stablecoin yield restrictions. Punchbowl News reported that the text followed months of talks. Those talks involved banking groups, crypto advocates, and Senate negotiators.
The draft language would ban certain rewards tied to stablecoins. It covers payments that are “economically or functionally equivalent” to bank deposit interest. The rule would apply to covered parties in the crypto market.
The agreement does not ban every type of reward. It leaves room for activity-based rewards on crypto platforms. However, those rewards cannot work like interest on a bank deposit.
Regulators would also receive new duties under the text. They would create disclosure rules for stablecoin rewards. They would also list reward activities that may be allowed.
CLARITY Act Markup Gains New Momentum
The stablecoin yield ban deal removes one barrier for the CLARITY Act. The bill aims to create market rules for digital assets. Senate lawmakers are now looking toward a May markup.
The deal follows the GENIUS Act, signed on July 18, 2025. That law created federal rules for payment stablecoin issuers. It covered reserves, redemption duties, and anti-money laundering rules.
However, banks raised concerns about reward programs outside issuers. They argued that exchanges or affiliates could offer yield-like benefits. The Tillis-Alsobrooks text seeks to close that gap.
Senate Banking Committee Chairman Tim Scott has said Republican support is needed. Other parts of the CLARITY Act are still under discussion. These include tokenization, DeFi rules, and software developer protections.
Crypto Industry Reacts To Yield Language
Blockchain Association CEO Summer Mersinger welcomed the agreement in a statement. “Resolving the stablecoin yield question clears the path to a Senate Banking Committee markup,” she said. She also urged the committee to move forward.
Coinbase policy chief Faryar Shirzad also supported the outcome. He said it preserved rewards tied to real platform and network use. Crypto firms have argued such rewards support user activity.
Banking groups have pushed for tighter limits on stablecoin rewards. They say yield-like payments could compete with bank deposits. Lawmakers are now trying to balance both sides.
The final CLARITY Act still needs more work before passage. The Senate must settle remaining issues and move the bill forward. Any final version may also need talks with the House.
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