The US CLARITY Act, a major cryptocurrency regulatory bill, has moved closer to passage after Senators published final text resolving a key dispute over stablecoin yields. The new provision prohibits paying interest solely for holding stablecoins but allows rewards tied to actual platform usage. Coinbase’s chief legal officer stated the compromise “protected what matters” for American consumers, and prediction market traders now see a 55% chance of the bill becoming law in 2026.
A significant hurdle for the CLARITY Act has been cleared with the publication of final text addressing stablecoin yields. According to Coinbase chief legal officer Faryar Shirzad, the move means “It’s time to get CLARITY done.” The new provision, titled “SEC 404. Prohibiting interest and yield on payment stablecoins,” explicitly bans crypto firms from paying interest for merely holding stablecoins like a bank deposit.
However, the text permits firms to offer rewards linked to “bona fide activities.” “In the end, the banks were able to get more restrictions on rewards, but we protected what matters – the ability for Americans to earn rewards, based on real usage of crypto platforms and networks,” Shirzad said. Some industry figures expressed frustration, with Helius Labs CEO Mert Mumtaz commenting on the “clarity of not getting risk-free yield on your dollars without using a bank.”
The stablecoin yield debate had been a primary roadblock delaying the legislation’s passage. Shirzad noted, “Now that this issue is behind us, it’s time to focus on the broader bill.” Traders on the Polymarket crypto prediction market now see a 55% chance of the CLARITY Act being signed into law in 2026, a 9% increase over the past day.
Coinbase CEO Brian Armstrong urged lawmakers to “Mark it up” following the announcement. Galaxy Digital head of firmwide research Alex Thorn suggested the text release indicates the Senate Banking Committee could schedule a markup “imminently, as soon as the week of May 11.” Thorn warned he expects “the banks to increase their opposition efforts.”
US Senator Bernie Moreno recently stated he anticipates the CLARITY Act will “get done” by the end of May. On April 11, US Senator Cynthia Lummis emphasized the urgency, declaring, “It’s now or never.” The development marks a pivotal step for the landmark regulatory framework.
