Final stablecoin yield provisions for CLARITY Act unveiled: Crypto legislation enters crucial phase
Finalized text addressing stablecoin yield provisions within the US CLARITY Act has been unveiled by US Senator Angela Alsobrooks and US Senator Thom Tillis, drawing significant attention from the cryptocurrency sector.
Following the publication of updated stablecoin yield provisions, the US CLARITY Act—legislation designed to deliver enhanced regulatory clarity to the nation's cryptocurrency sector—may be advancing toward enactment, as noted by Faryar Shirzad, chief legal officer at Coinbase.
"It's time to get CLARITY done," Shirzad expressed via a Friday post on X, following the release of final text by US Senator Angela Alsobrooks and US Senator Thom Tillis. The provisions aim to resolve the contentious stablecoin yield disagreement that has divided the banking and cryptocurrency sectors, with debate focusing on potential impacts to traditional banking competitiveness.
"In the end, the banks were able to get more restrictions on rewards, but we protected what matters – the ability for Americans to earn rewards, based on real usage of crypto platforms and networks," Shirzad said.
The document bearing the heading "SEC 404. Prohibiting interest and yield on payment stablecoins" establishes that cryptocurrency companies cannot provide "any form of interest or yield" to their customers exclusively for maintaining stablecoin holdings, in a manner comparable to traditional bank deposits or other interest-generating financial products.
Nevertheless, the provisions permit companies to provide rewards connected to "bona fide activities." Certain industry leaders expressed dissatisfaction with the decision. Helius Labs CEO Mert Mumtaz said, "The clarity of not getting risk-free yield on your dollars without using a bank."
Polymarket traders anticipate 55% odds of CLARITY passing in 2026
The release represents substantial progress for the proposed legislation and the cryptocurrency industry at large, given that the stablecoin yield controversy had emerged as a primary obstacle preventing the bill's advancement, notwithstanding earlier predictions this year of smooth congressional passage.
"Now that this issue is behind us, it's time to focus on the broader bill," Shirzad said.
On Polymarket, the cryptocurrency-focused prediction marketplace, traders currently estimate a 55% probability that the CLARITY Act will receive presidential signature and become law during 2026, representing a 9% increase within the last 24 hours.
Numerous figures within the industry are now advocating for the legislation to proceed to markup. Shortly following the announcement, Coinbase CEO Brian Armstrong said, "Mark it up."
Senate Banking Committee could schedule markup "imminently"
According to Alex Thorn, Galaxy Digital's head of firmwide research, the "release of text suggests that Senate Banking will schedule markup imminently, as soon as the week of May 11."
However, Thorn warned that he expects "the banks to increase their opposition efforts."
US Senator Bernie Moreno recently said that he anticipates the CLARITY Act to "get done" by the end of May. On April 11, US Senator Cynthia Lummis said, "It's now or never."