The U.S. Senate has reached a historic compromise on stablecoin yield provisions within the sweeping CLARITY Act, breaking a months-long deadlock between traditional banking and the crypto industry. According to a Punchbowl News exclusive, Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks finalized the terms ahead of a critical markup session in May.
No Bank-Like Interest, New 'Equivalent Test'
The deal explicitly prohibits crypto platforms from offering rewards that "economically or functionally equate to paying interest on bank deposits". However, it allows rewards on platform balances if the product passes a strict "equivalent test". New regulations will also require stablecoin issuers to follow a disclosure regime and a list of permissible reward activities.
Coinbase: 'We Protected the Most Important Part'
Coinbase Chief Policy Officer Faryar Shirzad took to X to confirm the text, noting the compromise was brokered by the White House, Treasury, and Senate Banking Committee members. He stated: "This debate was largely based on imagined risks, not real evidence... Ultimately, banks got more restrictions on rewards, but we preserved the essential piece: Americans can still earn rewards based on actual usage of crypto platforms and networks."
Next Up: Token Classification, DeFi, and Asset Tokenization
Shirzad urged lawmakers to now pivot to broader crypto legislation, citing progress on token classification, decentralized finance (DeFi), and asset tokenization. "It's time to finish CLARITY," he said, calling for consensus on the remaining regulatory pillars.