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CLARITY Act Advances With Stablecoin Yield Ban as Senate Floor Vote Nears

Analysts say the compromise favors USDC by ending yield contests to keep only usage‑linked perks.

Bernstein circle call cements clarity edge
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Overview

  • The Senate Banking Committee, which voted 15-9 on May 14, advanced the CLARITY Act to a floor vote that needs 60 votes.
  • The compromise bars deposit-like interest on stablecoin balances but permits rewards tied to activity such as trading or payments.
  • Bernstein and other analysts say this design gives Circle’s USDC a structural edge by ending a rate race and protecting its usage-based model.
  • Industry reaction has split, with Coinbase CEO Brian Armstrong voicing support while banking groups urge senators to tighten the rewards carve‑out.
  • Market scale is rising as dollar‑pegged stablecoins surpassed $300 billion in supply, with USDT and USDC holding about 97% share and monthly volumes near $15 trillion.