CLARITY Act Progress Hits Roadblock Over Stablecoin Yield Rules

The CLARITY Act's progress remains uncertain as lawmakers continue to work through key disagreements over the stablecoin proposal. The delay in releasing revised rules around stablecoin yields has pushed back the timeline for the bill.

Lawmakers are seeking more clarity on the rules, with Senator Thom Tillis stating that he needs more information before making the text public. The current draft largely sticks to earlier proposals, blocking users from earning rewards on idle stablecoin balances held in accounts, but still allowing yield tied to activities like transactions.

The debate over stablecoin rewards has become a major issue in the CLARITY Act. Traditional US banks are opposed to offering such rewards, arguing that it could affect liquidity and financial stability, while crypto companies like Coinbase disagree, saying banning rewards would slow down innovation and limit how stablecoins can be used.