U.S. Senators are reportedly set to release a compromise on stablecoin yield rules, potentially as soon as today. The draft language would ban stablecoin issuers from offering passive interest on holdings but allow rewards tied to real platform use, a key compromise after months of private negotiations. If approved, the move would clear a major hurdle for the broader CLARITY Act, paving the way for a Senate committee markup in May.
A Senate compromise on stablecoin yield rules is nearing release after months of private talks. Sources indicate the final text could arrive as soon as today.
The bill would prohibit stablecoin issuers from compensating users solely for holding tokens. This ban includes all forms of direct and indirect payments.
Rewards based on actual activity, such as transactions or platform use, are not prohibited by the proposal. This creates a narrow path for incentives while ending passive stablecoin yield models.
Eleanor Terrett verified that outreach to Senators Thom Tillis and Angela Alsobrooks signals negotiations are in their final phase. The language could enable a Senate Banking Committee markup in May.
Coinbase executives supported the result, with Chief Policy Officer Faryar Shirzad stating banks had obtained stricter limits while the industry maintained activity-related rewards. Brian Armstrong encouraged the bill to proceed to markup.
If passed, the Treasury Department and the CFTC would have 12 months to draft detailed rules governing these rewards. Regulators would examine factors like holding periods, balance size, and reward structure.
The deal removes one of the biggest obstacles for the CLARITY Act. Other sections, including token classification and DeFi regulation, remain to be discussed.
