Crypto trade groups called for a markup of key market structure legislation hours after U.S. Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) on Friday released compromise language on stable coin yield in the Digital Asset Market Clarity Act, the bill’s final major sticking point.
The text prohibits crypto companies from paying interest or yields on stablecoin balances in a manner that is economically or functionally equivalent to a bank deposit.
It defines rewards programs tied to “bona fide activities or transactions” and directs Treasury and the CFTC to draft rules within one year of enactment.
Summer Mersinger, CEO of the Blockchain Association, called the deal a step in the right direction.
“We commend Senators Tillis and Alsobrooks for their leadership in reaching this agreement,” Mersinger said. “Every day without a clear legal framework is an invitation for talent, capital and leading innovative companies to set up operations elsewhere.”
The Crypto Council for Innovation endorsed the bill while signaling concerns. Its CEO, Ji Hun Kim, said the new text extends the ban framework well beyond last year’s GENIUS Act, which only prohibited issuers from paying rewards.
“CCI has made it clear that we do not agree with the claims regarding deposit leakage issues related to stablecoin adoption,” Kim wrote on
Kim still urged the committee to move the bill forward. “The main goal is to ensure that the United States can lead in the cryptocurrency industry – this is the future. We respectfully ask the Banking Senate to make a mark-up. The time is now,” he wrote.
Dante Disparte, chief strategy officer of Circle, whose company issues the USDC and EURC stablecoins, endorsed the deal wholeheartedly.
“Today’s stablecoin yield compromise marks significant progress in the CLARITY Act negotiations,” Disparte said. He highlighted the growth of USDC in cross-border payments, capital markets collateral and agent trading.
“The United States faces a clear choice when it comes to digital assets: lead or be led,” he said. “Today’s progress is an encouraging signal that the United States is choosing to lead the way. »
Coinbase was the most important stake in the negotiations. CEO Brian Armstrong posted “Mark it up” after the text was removed. Legal Director Paul Grewal said the language preserves activity-based rewards tied to actual participation on crypto platforms, something the banking lobby had requested.
The Senate Banking Committee postponed an earlier CLARITY Act increase in January. Other negotiating points remain unresolved, but performance language has been easily the biggest obstacle.
Companies will need to restructure their rewards programs from a “buy and hold” model to a “buy and use” model to comply with transaction caveats.
