US Senate Reaches Compromise on CLARITY Act with Stablecoin Yield Ban

The US Senate has made progress on the CLARITY Act, a bill aimed at regulating the crypto market. A key provision related to stablecoin yield has been rewritten, prohibiting regulated crypto firms from paying customers interest for holding stablecoins.

However, rewards tied to verifiable on-chain activity, such as payments processed or transactions executed, are still permitted. This compromise has strengthened the position of regulated banks and may lead to a structural advantage in the market.

The bill now faces a markup session in the Senate Banking Committee, which could happen as early as May 11. Prediction markets price passage probability at roughly 60%, indicating that momentum has restarted after being stalled for several months.