Revised CLARITY Act Draft in U.S. Senate Would Bar Yield Earned Simply From Holding Stablecoins

ChainCatcher reported, citing CoinDesk, that crypto industry representatives were shown new stablecoin yield language in the latest draft of the Senate's Digital Asset Market Clarity Act during a closed-door review meeting on Capitol Hill on Monday. Early feedback described the wording as overly narrow and lacking clarity. The provision, introduced last Friday by Senators Angela Alsobrooks and Thom Tillis, would ban earning returns solely for holding stablecoins, curb practices that make such programs resemble interest-bearing bank deposits, and add constraints on other potentially permissible activities. A person familiar with the draft said the bill does not yet spell out how regulators would determine which activity-based stablecoin rewards are allowed. The language reflects a compromise shaped by lobbying from both the crypto industry and banks. Banks have argued that stablecoin rewards must not mimic interest-bearing deposits, warning that competing products could hurt banks and reduce lending. Under the current compromise, reward programs linked to user activity with stablecoins could be permitted, while balance-based rewards would be prohibited. The closed-door review is intended to move the Senate Banking Committee toward scheduling a hearing, a key step on the path to a full Senate vote. A related version of the Clarity Act passed the House last year, and another version has advanced through markup in the Senate Agriculture Committee. Key issues remain unresolved, including agreement on a DeFi regulatory framework. Democrats are also pressing to add a provision barring senior government officials from personally profiting from the crypto industry, a measure seen as aimed at President Trump.