Crypto industry backs CLARITY Act yield compromise, pushes Senate Banking for markup

The crypto industry supports a compromise on stablecoin yield within the CLARITY Act, aiming to influence Senate Banking for regulatory changes.

Could the CLARITY Act mark a turning point for the crypto industry? Recent developments suggest that the sector is rallying behind a compromise on stablecoin yield, a much-anticipated move that could reshape the regulatory landscape. What Is the Compromise Involved? On May 2, 2026, U.S. Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) released a compromise on stablecoin yield as part of the Digital Asset Market Clarity Act. This agreement bars crypto firms from paying interest or yield on stablecoin balances in a way that resembles traditional bank deposits. However, it allows for rewards tied to "bona fide activities or bona fide transactions," representing a critical step in moving the industry forward. How Will This Affect Crypto Firms? Firms are now required to shift their reward programs from a "buy and hold" model to a "buy and use" approach. This crucial change aims to ensure that any incentives are directly linked to user engagement rather than passive holding. While this restructuring might create hurdles for some companies, it also opens the door for more innovative frameworks. Who’s Backing the Deal? The compromise received immediate support from several crypto trade groups including Coinbase and Circle. They have urged the Senate Banking Committee to advance this vital piece of legislation. Summer Mersinger, CEO of the Blockchain Association, praised the agreement, emphasizing the need for a clear legal framework to attract top talent and capital. "Every day without a clear legal framework is an invitation for top-tier talent, capital, and innovative companies to locate elsewhere," Mersinger said. Despite their backing, the **Crypto Council for Innovation (CCI)** expressed concerns over the broad prohibitions entailed in the deal. CEO Ji Hun Kim indicated that the language of the new agreement extends beyond last year’s **GENIUS Act**, which only barred issuers from paying rewards, stressing the importance of advancing the bill nonetheless. Wh