Crypto Industry Pushes Back on CLARITY Act Stablecoin Yield Provisions

Crypto industry leaders are mounting a coordinated effort to reshape key provisions of the CLARITY Act, particularly around stablecoin rewards. The push comes after major players like Coinbase publicly opposed a compromise that would impose sweeping restrictions on how crypto firms distribute stablecoin yields to customers.

At the center of the debate is a proposed ban on rewards tied to idle balances, allowing only activity-based incentives that critics argue are fundamentally different from traditional bank deposit interest. Coinbase and other firms contend that such restrictions would hurt consumers and eliminate viable rewards programs that millions of users depend on.

According to crypto journalist Eleanor Terrett, industry leaders are now drafting a counterproposal — backed by voices like Coinbase's Global Head of Investment Research David Duong — outlining why the current language needs significant revision to protect both consumers and sustainable crypto ecosystems.

On the legislative front, Senator Thom Tillis' office is expected to release a public draft of the stablecoin yield provisions, even as negotiations with stakeholders remain ongoing. Tillis and Senator Angela Alsobrooks previously struck a deal with the White House to include compromise language addressing the tension between banks and the crypto sector. Senate Banking Committee Chair Tim Scott confirmed that Republicans, Democrats, and the White House are collaborating on mutually agreeable bill language ahead of an anticipated April markup.

Senator Cynthia Lummis pushed back against rumors that the CLARITY Act weakens DeFi protections, asserting that recent bipartisan revisions to Title 3 would make it the strongest safeguard for decentralized finance and blockchain developers to date.

Despite the progress, market confidence is wavering. Polymarket currently puts the odds of President Trump signing the bill into law this year at 59%, down from earlier highs, as the stalemate between banks and the crypto industry continues to cast uncertainty over the bill's timeline.