Stablecoin yield in crypto Clarity Act won't allow rewards on balances, latest text says

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Stablecoin yield in crypto Clarity Act won't allow rewards on balances, latest text says The crypto industry got a first look at legislative language that won't allow rewards on stablecoin balances, and the approach is seen as restrictive. By Jesse Hamilton | Edited by Nikhilesh De Mar 23, 2026, 10:43 p.m. Make us preferred on Google Senator Angela Alsobrooks (Nikhilesh De/CoinDesk) What to know : The newest language on stablecoin yield in the Clarity Act has crypto insiders cringing, according to a source familiar with the industry's opening chance to see the text. Stablecoin yield — a point of contention between bankers and crypto platforms — was the subject of a compromise crafted by senators negotiating the bill. The latest version would grant rewards programs on a narrow basis, as long as they don't resemble the interest from bank deposits in any way. Crypto industry insiders got their first look at the revised market structure bill in the Senate, and the opening impression was that the language on allowable stablecoin yield was overly narrow and unclear, according to a person familiar with the current draft. The new language, which was announced Friday by Senators Angela Alsobrooks and Thom Tillis, would ban yield payments for simply holding a stablecoin. It would also restrict any approach that makes the program in any way equivalent to a bank deposit, and it applies further limits to other potentially allowed activities, the person said, adding that the mechanics of determining activities-based stablecoin rewards is left uncertain. The crypto industry got this first look at the revised section of the Digital Asset Market Clarity Act on Monday in a closed-door review on Capitol Hill in Washington, representing an attempt to clear a roadblock in the effort to get a hearing in the Senate Banking Committee. Bankers had insisted that stablecoin rewards look nothing like interest-bearing bank deposits, because they argued the competing product could hamstring the industry and strangle lending. So, the compromise will allow rewards programs on users' stablecoin activities but not balances. A similar version of the Clarity Act passed in the House of Representatives last year, and another version cleared a markup hearing in the Senate Agriculture Committee. The banking panel represents a big step that would get the legislation to a place where lawmakers could prepare a final, combined version that would get a vote of the overall Senate. The stablecoin yield lobbying fight between the crypto sector and the banking industry had stifled progress on the legislation for a while. But it's not the only sticking point. The industry will still need to see the final approach to oversight of the decentralized finance (DeFi) space, which had remained an area of concern for Democrats who had wanted to ensure illicit finance protections. And the Democrats have also insisted on a need for a ban on senior government officials profiting personally from the crypto industry — a provision aimed squarely at President Donald Trump. Though the industry recorded a tremendous win last year when the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act became the first major U.S. law to govern a segment of the crypto industry, it was meant as the less important first step of a one-two policy approach that concludes with the Clarity Act. That full-fledged arrival of crypto into the U.S. financial system will eliminate regulatory uncertainty for any investors who have been hesitant about involvement in the sector. Digital assets insiders believe it will open flood gates among institutional investors and developers who want to build atop the technology. Breaking News More For You Brazil’s finance minister delays divisive crypto tax plan By Francisco Rodrigues | Edited by Sheldon Reback 10 hours ago The proposed tax would classify some crypto transactions as foreign exchange operations, subject to rates ranging to as high as 3.5%. What to know : Brazil's finance minister delayed a consultation on taxing certain crypto transactions, citing concerns about triggering conflict with Congress during an election year. The proposed tax would classify some crypto transactions as foreign exchange operations, subject to rates as high as 3.5% that industry groups argue are illegal and unfair. The postponement comes amid pushback from industry groups, who say stablecoins shouldn't be treated as foreign exchange instruments, and may be followed by shelving another proposal to end tax breaks on investment securities. 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