A long-running roadblock to the CLARITY Act — the high-profile crypto market structure bill — may finally be loosening. Reports this week indicate negotiators made fresh progress on the thorny “stablecoin yield” issue after a second round of meetings with Senate staffers late last week, raising expectations the bill could move to a markup by the end of April.
Crypto In America reported that representatives from both the crypto and banking sectors were shown revised language aimed at resolving whether platforms can offer rewards or yield on stablecoin balances without triggering concerns about “deposit flight.” According to two anonymous sources (one from each side), crypto firms reviewed the new text on Thursday and banks were briefed on Friday. Neither source disclosed specifics, but both said they were hopeful a workable compromise had been reached.
The dispute centers on whether the CLARITY Act should bar platforms from providing yield — directly or indirectly — on stablecoin holdings, or from enabling activity that looks or functions like a bank deposit. A late-March draft tightened language in that direction, seeking to ban “economically or functionally equivalent” interest and to prevent workarounds. That version drew strong pushback from major industry players, including Coinbase and Stripe, and stalled the bill for roughly three months while negotiators hashed out alternatives.
Coinbase publicly told Senate offices it could not support the updated draft and had “significant concerns” about the stablecoin yield provisions. Yet Coinbase’s chief legal officer, Paul Grewal, later signaled optimism, suggesting Senate negotiators were “very close” to a deal — a hint that helped revive hopes for forward movement.
Timing remains uncertain. Congress is on its Easter recess, and it’s unclear whether the Senate Banking Committee will publish the latest draft before a markup session expected in late April. Bitcoinist reported the text was initially due before the break but was pushed to later in the month. A spokesperson for Senator Thom Tillis’ office said the delay was intentional, to avoid giving opponents an opportunity to slow the bill’s progress by publicly mobilizing against early text leaks.
If the yield question is effectively sidelined, committee staff and members have roughly two weeks after they return to wrap up remaining items — notably DeFi rules, tokenization frameworks, and token classification — areas that, Senator Tim Scott said, have quietly advanced over the past months.
What to watch next: whether the Senate Banking Committee releases the revised CLARITY Act text and whether a formal markup is scheduled before the end of April. The outcome will shape fundamental rules for stablecoin incentives and could set precedent for how crypto platforms are allowed to compensate users going forward.
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