Senators Release CLARITY Act Stablecoin Yield Compromise as White House Pushes for May Markup

U.S. Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) released compromise legislative text Friday resolving the stablecoin yield dispute that had stalled the Digital Asset Market Clarity Act since January. The new language prohibits crypto firms from offering yield on stablecoin balances that is “functionally or economically equivalent” to a bank deposit but preserves room for reward programs structured around transaction activity rather than passive holding.

The distinction matters because it lets firms like Coinbase and Circle continue offering stablecoin incentive programs while addressing the banking industry’s core objection: that yield-bearing stablecoins could siphon deposits away from traditional banks. The compromise was the product of months of negotiation facilitated by the White House and both senators, and comes after Treasury Secretary Scott Bessent publicly pressured holdouts to fall in line, labeling crypto executives who resisted the bill “nihilists” in a Wall Street Journal op-ed last month.

This story is an excerpt from the Unchained Daily newsletter.

Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, called the moment “go time.” Senator Cynthia Lummis, who chairs the Banking Subcommittee on Digital Assets, previously committed to a May markup and said that failure to pass the bill this year would push the next opportunity to 2030. Coinbase CEO Brian Armstrong responded: “Mark it up.” Circle Chief Strategy Officer Dante Disparte endorsed the deal, saying it “marks meaningful progress.”

Not everyone was fully satisfied. Ji Kim, CEO of the Crypto Council for Innovation, said the text “goes very far beyond” the GENIUS Act’s restrictions but still urged the committee to advance the bill. The organization’s stance reflected a broader industry calculation: imperfect legislation now beats no legislation at all.

The calendar remains the biggest risk. The Senate Banking Committee’s earliest available markup window is the week of May 11, with Memorial Day recess starting May 21. Galaxy Digital pegged the odds of the CLARITY Act becoming law in 2026 at roughly 50-50 in an April research note, citing “the sheer number of unresolved questions that must be settled in sequence under severe time pressure.” Polymarket odds sat at around 48% as of late last week.