CLARITY Act Stablecoin Yield Provisions Published, Markup Expected Imminently

The US CLARITY Act, which aims to provide the US crypto industry with more regulatory clarity, could now move closer to becoming law after new stablecoin yield provisions were published, according to Coinbase chief legal officer Faryar Shirzad. "It's time to get CLARITY done," Shirzad said in an X post on Friday, after US Senator Thom Tillis and US Senator Angela Alsobrooks published the final text aimed at settling the stablecoin yield dispute between the banking and crypto industries, which has centered on whether such yields would harm the banking system's competitiveness. "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. The text titled "SEC 404. Prohibiting interest and yield on payment stablecoins" states that no crypto firm may pay "any form of interest or yield" to customers solely for holding stablecoins, akin to a bank deposit or any similar interest-bearing product. However, it allows firms to offer rewards tied to "bona fide activities." Some industry executives voiced frustration with the ruling. Helius Labs CEO Mert Mumtaz said, "The clarity of not getting risk-free yield on your dollars without using a bank." Polymarket traders anticipate 55% odds of CLARITY passing in 2026. It marks a significant step forward for both the legislation and the broader crypto industry, as the stablecoin yield debate had been one of the main roadblocks delaying its passage, despite expectations earlier this year that it would move through Congress. "Now that this issue is behind us, it's time to focus on the broader bill," Shirzad said. Traders on the Polymarket crypto prediction market now see a 55% chance of the CLARITY Act being signed into law in 2026, up 9% over the past 24 hours. Many in the industry are now calling for the bill to be marked up. Coinbase CEO Brian Armstrong said shortly after the announcement, "Mark it up." Senate Banking Committee could schedule markup "imminently." Galaxy Digital head of firmwide research Alex Thorn said the "release of text suggests that Senate Banking will schedule markup imminently, as soon as the week of May 11." However, Thorn warned that he expects "the banks to increase their opposition efforts." US Senator Bernie Moreno recently said that he anticipates the CLARITY Act to "get done" by the end of May. On April 11, US Senator Cynthia Lummis said, "It's now or never."