Senate's Revised Crypto Market Structure Bill Raises Stablecoin Yield Concerns

Industry insiders recently got their first look at the updated Senate market structure bill, and initial reactions suggest the new stablecoin yield language may be too narrow and ambiguous. According to a source familiar with the draft, the revised provisions introduced by Senators Angela Alsobrooks and Thom Tillis would prohibit yield payments for simply holding a stablecoin and block any structure that resembles interest-bearing bank deposits.

The crypto sector reviewed the updated section of the Digital Asset Market Clarity Act during a closed-door Capitol Hill session on Monday. The revision is designed to address concerns from traditional banks, which argued that stablecoin rewards functioning like deposit interest could undermine lending and weaken the banking industry. As a compromise, the bill would permit rewards tied to user activity rather than account balances — though the exact mechanics for determining activity-based stablecoin rewards remain unclear.

The Clarity Act already passed the House last year and advanced through a Senate Agriculture Committee markup. Getting it through the Senate Banking Committee would be a significant milestone, moving the legislation closer to a final combined version ready for a full Senate vote.

Stablecoin yield has been one of the most contentious issues holding back the bill, but it is far from the only hurdle. Decentralized finance oversight continues to be a sticking point, particularly for Democrats pushing for stronger protections against illicit financial activity. Lawmakers also continue to push for a prohibition on senior government officials personally profiting from the crypto industry — a provision widely seen as targeting President Donald Trump.

Despite the ongoing challenges, the broader crypto industry remains optimistic. Passing the Clarity Act is viewed as the critical second step following last year's GENIUS Act. Full regulatory clarity is expected to unlock substantial institutional investment and accelerate blockchain development across the United States.