Crypto Industry Backs CLARITY Act Stablecoin Yield Compromise to Push Senate Markup

The cryptocurrency industry is throwing its weight behind a newly proposed compromise regarding CLARITY Act stablecoin yield, pushing the Senate Banking Committee to advance the critical market structure legislation. Released by U.S. Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), the updated text addresses the final major sticking point in the Digital Asset Market Clarity Act. The agreement forces digital asset firms to fundamentally restructure their reward programs, shifting from a passive "buy and hold" model to an active "buy and use" framework.

Under the new provisions, crypto firms are strictly barred from paying interest or yield on stablecoin balances in a way that is economically or functionally equivalent to a traditional bank deposit. However, the compromise carves out essential exemptions for rewards programs tied to "bona fide activities or bona fide transactions." The legislation directs the Treasury and the Commodity Futures Trading Commission (CFTC) to establish specific rules within one year of enactment.

Major players across the digital asset sector have quickly endorsed the deal, despite some lingering reservations. Blockchain Association CEO Summer Mersinger praised the bipartisan effort, noting that the absence of a clear legal framework continues to drive top-tier talent and capital overseas. Circle Chief Strategy Officer Dante Disparte, whose company issues the USDC and EURC stablecoins, offered an unqualified endorsement. Disparte highlighted the growing utility of USDC in cross-border payments and capital markets, stating that the U.S. must choose to "lead or be led" in the digital asset space.

Coinbase, which had significant stakes in the negotiations, also voiced strong support. CEO Brian Armstrong publicly urged the committee to "Mark it up," while Chief Legal Officer Paul Grewal confirmed that the language successfully preserves activity-based rewards tied to real platform participation. This preservation of activity-based rewards was a key demand from the banking lobby during negotiations.

However, the Crypto Council for Innovation (CCI) flagged concerns regarding the scope of the prohibition. CCI CEO Ji Hun Kim noted on X that the new language extends far beyond last year's GENIUS Act, which only restricted issuers from paying rewards. By applying the ban to all digital asset market participants, Kim argued the text goes "VERY FAR beyond" previous iterations, though he still urged the Senate Banking Committee to advance the bill to ensure U.S. leadership in the sector.

In a separate but significant regulatory move, Brazil's central bank has officially banned electronic foreign exchange (eFX) providers from utilizing stablecoins and other cryptocurrencies, such as Bitcoin, to settle overseas remittances.

• The new restriction goes into effect on October 1.
• The ban specifically targets fintechs and payment firms, effectively closing the back-end payment rail for cross-border flows.
• Individual crypto investors remain unaffected and can continue to buy and hold digital assets.

The CLARITY Act's mandate to transition from "buy and hold" to "buy and use" represents a massive paradigm shift for the digital asset economy. By explicitly outlawing passive yields that mimic traditional bank deposits, regulators are forcing stablecoins to prove their actual utility as mediums of exchange rather than speculative investment vehicles. This regulatory guardrail effectively protects traditional banking deposits from capital flight while legitimizing stablecoins for everyday commerce.

For companies like Coinbase and Circle, this compromise is a strategic victory. It provides the regulatory certainty needed to scale operations in the U.S. without facing constant enforcement actions. As the Treasury and CFTC prepare to draft the specific rules over the next year, the industry will likely see a surge in innovative, transaction-based reward programs that incentivize active network participation over mere asset hoarding.