Overview
- Senators Thom Tillis and Angela Alsobrooks released compromise CLARITY Act text that bans rewards on stablecoin balances that function like bank interest while preserving activity-based rewards tied to use, such as staking, governance, or payments.
- The proposal directs the Treasury and market regulators to define a list of permissible reward categories and to set new disclosure rules after the bill becomes law.
- Major crypto groups, including Coinbase and the Blockchain Association, publicly backed the language and urged the Senate Banking Committee to move to a vote.
- Bank trade groups argued the text leaves loopholes for indirect, interest-like benefits, and Tillis responded that the deal addresses deposit-flight risks and that he “respectfully” disagrees with the banks’ critique.
- Committee leaders are targeting a mid‑May markup, betting markets raised the odds of passage after the deal, and larger investors say they will wait for the final rules before committing more capital.