Senators reach compromise on stablecoin yield to advance Crypto Clarity Act

Senators Thom Tillis and Angela Alsobrooks said they reached an agreement in principle on stablecoin yield, a step that could allow the Digital Asset Market Clarity Act to move toward a Senate Banking Committee hearing. The pair plan to consult industry stakeholders for feedback, and Alsobrooks reiterated that the yield accord would bar rewards on passive stablecoin balances.

Bankers had warned rewards on stablecoin holdings could closely resemble interest on bank deposits and threaten lending; the senators said they sought an approach that would not put banking at risk. Several issues remain unresolved, including ethics, illicit finance and the bill’s treatment of decentralized finance (DeFi).

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