Senate Finalizes CLARITY Act Stablecoin Yield Ban
The compromise bans crypto firms from paying interest for holding stablecoins while allowing rewards tied to platform usage. Senate markup expected week of May 11 with final vote targeted for end of May.
Key Takeaway
Stablecoin yield ban clears path for CLARITY Act vote by end of May after year-long banking dispute.
Senators Thom Tillis and Angela Alsobrooks published the final stablecoin yield provisions for the CLARITY Act on Friday.
The compromise bans crypto firms from paying interest or yield to customers simply for holding stablecoins. But it allows companies to offer rewards tied to what the text calls bona fide activities — actual usage of platforms and networks. Coinbase Chief Legal Officer Faryar Shirzad said banks were able to get more restrictions on rewards, but the company protected what matters: the ability for Americans to earn rewards based on real usage of crypto platforms and networks.
Galaxy Digital Head of Research Alex Thorn predicted banks will increase their opposition efforts now that the yield fight is settled. He expects a Senate Banking Committee markup as soon as the week of May 11, calling the final text go time for the broader bill. Coinbase CEO Brian Armstrong responded with two words: Mark it up.
The yield ban was the last major sticking point delaying the CLARITY Act, which passed the House in July 2025 with a 294-134 vote. Markup hearings were postponed from mid-January because Democrats and Republicans couldn't agree on whether stablecoin issuers should be allowed to share returns with users. Banks argued that offering yield on stablecoins would drain deposits from the traditional banking system.
Helius Labs CEO Mert Mumtaz expressed frustration with the final language, describing it as the clarity of not getting risk-free yield on your dollars without using a bank. Senator Bernie Moreno anticipates the bill will get done by end of May. Polymarket traders now give the CLARITY Act a 55% chance of becoming law in 2026, up 9% in the past 24 hours.
This article was written based on reporting from Cointelegraph.
