Senators Push Stablecoin Yield Compromise to Unlock Stalled Clarity Act

Senators are negotiating a compromise on stablecoin rewards to unlock the long-stalled Digital Asset Market Clarity Act, with lawmakers saying the final bill will not risk traditional bank deposits while preserving crypto innovation.

“Senators try to unlock stalled crypto Clarity Act with compromise on stablecoin yield As the window narrows to pass a crypto market structure bill this year, lawmakers told bankers at a Washington summit that the final bill won't risk deposits”

@coindesk

The American Bankers Association has been actively lobbying to close any stablecoin yield loophole, and senators at a Washington summit said they are working on a compromise to advance the bill.

@coindesk

Lawmakers and bankers emphasized keeping rewards away from static stablecoin holdings that resemble bank accounts to avoid deposit flight, even as the window to pass a major crypto bill in 2026 narrows.

Senators Angela Alsobrooks and Thom Tillis are the central negotiators shaping the compromise, describing a package designed to put 'guardrails' in place to prevent deposit flight while allowing innovation to grow.

Alsobrooks said the compromise she and Tillis are working on "will allow us to have the guardrails in place that will help us to prevent — in all the ways we can — the deposit flight that we do not want to see happen, and to allow the innovation to grow at the same time."

Blockonomi

Proposals under discussion would likely narrow the scope of stablecoin activity eligible for customer rewards rather than a blanket ban or open-ended allowance.

Political dynamics make Tillis a pivotal vote: Live Bitcoin News reports the White House shared fresh text with Tillis’s office and that he was a Republican holdout whose support is essential if Democrats do not cross the aisle.

“Senators try to unlock stalled crypto Clarity Act with compromise on stablecoin yield As the window narrows to pass a crypto market structure bill this year, lawmakers told bankers at a Washington summit that the final bill won't risk deposits”

CoinDesk

Observers said the bill can still pass along party lines without Democratic votes, but Tillis’s backing becomes "non-negotiable" if no Democrats switch, increasing the leverage of his office in final drafting.

Meanwhile, some senators including Mike Rounds acknowledged uncertainty about the right policy approach to stablecoin rewards, underlining why negotiators are seeking compromise language.

Industry reactions are mixed: banks and the ABA want strict limits, citing last year's GENIUS Act ban on payment stablecoins paying interest, while crypto firms and exchanges have pushed back—Coinbase explicitly cited Tillis and Alsobrooks’ yield-related amendments when it pulled support.

ABA President Rob Nichols warned that unless exchanges and affiliates are bound by similar restrictions, the result could be an effort to evade congressional intent.

Live Bitcoin News

Crypto trade groups and DeFi proponents say the yield fight has consumed negotiations and delayed attention to other market-structure issues.

Timing and remaining issues are unresolved: sources warned the potential for a major 2026 crypto bill still depends on resolving final points of debate and squeezing through a tight Senate calendar, and observers described the mood as only "cautiously optimistic" that progress in the coming weeks could reschedule a markup.

“**Crypto bill hits new impasse, as banks reject White House compromise - report** Talks on landmark crypto legislation have reached a new stalemate after banks said they could not support a compromise proposed by the White House, raising doubts about whether the bill will pass this year and drawing criticism from Donald Trump, who accused banks of obstructing progress”

Seeking Alpha

The yield debate has also siphoned attention from DeFi and other parts of the bill, leaving several questions unanswered if a late-March or spring markup is to succeed.

@coindesk