CLARITY Act compromise permits stablecoin rewards, bars bank-like interest and clears Senate path

Lawmakers reached a compromise on a key stablecoin yield provision that had stalled the U.S. CLARITY Act, preserving the ability for crypto firms to offer rewards on stablecoins while adding restrictions intended to protect bank deposit businesses ^{[1] [2]}.

The revised text blocks offerings that are “economically or functionally equivalent” to bank deposit interest but allows “bona fide” transactions and other reward mechanisms that do not mimic bank deposits, according to the published draft and reporting ^{[2] [3]}.

Industry and legislative actors, including a reported agreement tied to Coinbase and negotiations led by Senators such as Thom Tillis and Angela Alsobrooks, helped break the standoff and are expected to unlock renewed Senate momentum for the broader crypto bill ^{[4] [3]}.

Observers and reporters said the consensus document was nearing completion and its release is being treated as the crucial step to advance the CLARITY Act through the Senate ^{[5] [6] [1]}.