A compromise on stablecoin yield rules is close, as sources say the final text could drop as soon as today. Journalist Eleanor Terrett confirmed outreach to Senators Thom Tillis and Angela Alsobrooks, indicating that the process has reached the last stage after months of closed-door talks.
The delay since January has stalled the broader CLARITY Act. This text removes that bottleneck and opens the path to a Senate Banking Committee markup, now expected in May.
The draft language blocks stablecoin issuers from paying yield simply for holding tokens. Any return that looks like bank deposit interest is banned. The wording is strict, no direct or indirect payment tied only to balance holding, whether in cash, tokens, or other forms.
At the same time, the compromise allows rewards tied to real platform activity. Users can still earn through transactions, usage, or network participation. This is a transition from passive income to activity-driven rewards.
This follows discussions from early 2026. Banks pushed for limits to stop stablecoins from competing with deposits, while crypto firms pushed to keep user incentives active. The final text sits between both sides.
Coinbase leadership confirmed the outcome. Chief Policy Officer Faryar Shirzad said banks secured tighter limits, but the industry kept activity-based rewards intact. CEO Brian Armstrong pushed for the bill to move forward with a markup.
Legal experts say the language forces a redesign of yield products. The old “buy and hold” model no longer works. Firms must build systems where rewards come from usage, not idle balances.
The draft also gives regulators room to define details later. The Treasury and CFTC will write rules within a year of the law passing. They will decide how rewards are calculated, including factors like duration, balance size, and type of activity.
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This agreement clears one of the biggest hurdles in the CLARITY Act. The bill already covers token classification, DeFi rules, and tokenization frameworks. Those sections remain under negotiation, but yield was the main blocker.
(adsbygoogle = window.adsbygoogle || []).push({});The compromise follows the GENIUS Act signed in July 2025, which banned direct interest but left gaps around exchange-based rewards. This new text closes that gap and extends the restriction across the market.
With the yield language settled, lawmakers can move the full bill forward. The next step is committee markup. If that holds in May, the legislation would enter a key phase toward Senate approval.
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