Clarity Act Stablecoin Yield Compromise Divides Crypto Industry

ChainCatcher reports that a compromise proposal on stablecoin yields tied to the U.S. senators' Clarity Act is drawing split reactions across the crypto sector. Coinbase has told Senate staff it is unhappy with the latest draft language, though it has not publicly come out against it. The proposal was shared with industry stakeholders on Monday. Some participants flagged concerns, while others said the text was better than expected. Under the draft, certain regulatory agencies would be tasked with writing rules to clarify how yield-related stablecoin activities are regulated. Industry executives worry those rules could end up relying on subjective standards. The language could also limit companies' ability to link rewards to the volume of stablecoin transactions. On an industry-wide conference call this week, Coinbase broke from parts of the group. Some firms argued that giving up certain stablecoin rewards would be costly, while others said the bigger risk is losing the Clarity Act altogether and undermining the broader legislative framework for crypto. Markets reacted earlier to reports of the compromise. Circle's shares fell 20% on Tuesday before a modest rebound on Wednesday. White House crypto adviser Patrick Witt called related forecasts "ill-informed" in a post on X, adding that "everything will work out." The final text is expected by the end of this week or early next week.