Clarity on stablecoin yield? đź‘€

The Clarity Act may finally have a path to passage following a proposed compromise on stablecoin yield language.

Author

Andrew Hayward
May 04, 2026

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đź“ť What you need to know

Senators Thom Tillis and Angela Alsobrooks unveiled new language for the Clarity Act—a sweeping bill that would legalize most crypto activity in the U.S.—aimed at resolving a months-long battle between the banking lobby and the crypto industry over stablecoin rewards.

The compromise would ban rewards that are "economically or functionally equivalent" to interest on a bank deposit, but would potentially still allow rewards tied to staking, governance, and other account activity. Coinbase, which had previously walked away from the bill over this exact issue, signaled its support for the deal.

Banks, however, aren't saying much. The American Bankers Association had argued that crypto firms should be barred not just from offering yield directly, but also from allowing yield-like benefits to reach stablecoin holders indirectly. The clock is ticking: Senate Banking Committee Chair Tim Scott plans to schedule a vote this month, with only two weeks of session remaining.

Banks Stay Tight-Lipped as Senators Reveal Proposed Clarity Act Stablecoin Deal

Senators unveiled a Clarity Act compromise on the subject of stablecoin rewards. Crypto seems happy enough, but what about the banks?

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