Crypto trade organizations have urged for a markup of significant market structure legislation shortly after U.S. Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) unveiled a compromise text regarding stablecoin yield in the Digital Asset Market Clarity Act. This text addresses the final major hurdle in the legislation.
The proposed legislation prohibits crypto firms from offering interest or yield on stablecoin balances in a manner that is economically or functionally similar to traditional bank deposits. However, it does allow for rewards programs linked to “bona fide activities or bona fide transactions” and mandates that the Treasury and the Commodity Futures Trading Commission (CFTC) establish rules within a year of the bill’s enactment.
Summer Mersinger, CEO of the Blockchain Association, described the agreement as a positive development. “We commend Senators Tillis and Alsobrooks for their leadership in reaching this agreement,” she stated. Mersinger emphasized the necessity of a clear legal framework to attract talent and investment to the U.S. crypto sector.
The Crypto Council for Innovation (CCI) expressed support for the bill while also raising concerns about its broad prohibitions. CCI CEO Ji Hun Kim noted that the new language extends the prohibitive measures beyond those outlined in last year’s GENIUS Act, which restricted only issuers from providing rewards. Kim argued that the current text “goes VERY FAR beyond” the GENIUS Act by applying to all participants in the digital asset market.
Despite these concerns, Kim urged the committee to proceed with the markup, emphasizing the importance of U.S. leadership in the crypto space. He stated, “The north star is to ensure that the U.S. can lead on crypto—this is the future. We respectfully ask Senate Banking to move to mark up. The time is now.”
Dante Disparte, Chief Strategy Officer at Circle, which issues the USDC and EURC stablecoins, supported the compromise without reservations. He remarked that the agreement represents significant progress in the negotiations surrounding the CLARITY Act and highlighted USDC’s role in cross-border payments and capital markets.
Coinbase, a major player in the crypto industry, had significant interests in the negotiations. CEO Brian Armstrong expressed his support with the phrase “Mark it up” following the release of the text. Chief Legal Officer Paul Grewal noted that the language allows for activity-based rewards tied to genuine participation on crypto platforms, aligning with requests from the banking lobby.
The Senate Banking Committee had previously postponed a markup of the CLARITY Act in January. While other negotiation points remain unresolved, the yield language has been identified as a primary obstacle. To comply with the new regulations, firms will need to transition their rewards programs from a “buy and hold” model to a “buy and use” framework.
In related news, Brazil’s central bank announced a ban on electronic foreign exchange (eFX) providers from utilizing stablecoins and other cryptocurrencies, such as Bitcoin, for settling overseas remittances, effective October 1. This ban will impact fintechs and payment firms, restricting back-end payment channels for cross-border transactions, although individual crypto investors will still be able to buy and hold assets.
Crypto trade groups are advocating for legislative changes to the Digital Asset Market Clarity Act, which addresses stablecoin yield regulations. The proposed bill prohibits interest payments on stablecoin balances similar to bank deposits, while allowing rewards linked to specific transactions. Industry leaders express cautious optimism about the potential for clearer regulatory frameworks.