CLARITY Act Delay Hits Stablecoin Yield Sticking Point

The CLARITY Act, a key piece of market structure legislation in the U.S., has hit another roadblock as stablecoin yield disputes continue to stall progress. Senator Thom Tillis (R-N.C.) has advised Chairman Tim Scott (R-S.C.) to hold off on a markup until May, citing the need for further negotiations between traditional banks and the crypto industry.

The delay is a result of ongoing disagreements over whether platforms can offer yields or rewards on stablecoins. A compromise brokered by Tillis and Senator Angela Alsobrooks (D-MD) in late March would ban passive yield on stablecoin balances while permitting activity-based rewards tied to payments, transfers, and platform engagement.

However, banking trade groups have escalated their opposition to the deal, leading to a wider committee-level dispute. The Digital Chamber has urged the Senate Banking Committee to move the bill forward, citing regulatory ambiguity as a concern and arguing that eliminating stablecoin activity-based rewards would 'severely undermine dollar dominance in the digital asset ecosystem.'