Senators Thom Tillis and Angela Alsobrooks have declared the CLARITY Act stablecoin yield compromise final, signaling that one of the most contentious provisions in the broader crypto market structure bill has reached resolution.
The bipartisan announcement addresses the long-debated question of whether stablecoin issuers should be permitted to offer yield to holders, a sticking point that had stalled progress on the legislation for months. Senator Alsobrooks’ office confirmed that senators and the White House struck an agreement in principle to resolve the clash between banking interests and the crypto industry over the provision.
The compromise language appears in the latest draft of the CLARITY Act, which aims to provide regulatory clarity for the crypto industry by establishing clear definitions of which digital assets fall under securities law and which do not. The stablecoin yield question sat at the center of that broader effort.
Why stablecoin yield became the key sticking point
Stablecoin yield refers to interest or rewards that stablecoin issuers pass to holders, similar to how a savings account pays interest on deposits. For regulators, the concern is that yield-bearing stablecoins could function as unregistered securities or compete directly with bank deposits without equivalent consumer protections.
A White House analysis examined the effects of a stablecoin yield prohibition on bank lending, framing the policy trade-off between protecting the traditional banking system and allowing innovation in digital dollar products. That tension between banks and crypto firms is what Tillis and Alsobrooks say they have now resolved.
The compromise matters particularly for protocols like Ethena, which offer yield on synthetic dollar products. Any federal framework that permits or restricts stablecoin yield will directly shape how such DeFi protocols structure their offerings going forward.
What comes next for the CLARITY Act
A finalized compromise between two senators does not mean the bill has passed. The market structure draft still needs to clear the Senate Banking Committee, survive a full Senate vote, and then be reconciled with any competing House legislation.
Industry observers reacted quickly. Coinbase chief policy officer Faryar Shirzad commented on the development, while reporting from CoinTelegraph described the mood as “go time” for the broader crypto legislative push.
The resolution of the yield question could accelerate momentum for related crypto policy efforts. Stablecoin regulation has been closely linked to other legislative priorities, including exchange listing frameworks and enforcement clarity for digital asset platforms.
Readers tracking Washington’s crypto agenda should watch for the Senate Banking Committee markup schedule, any companion House bill text, and whether the White House formally endorses the compromise language ahead of a floor vote.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
