Last updated on March 31st, 2026 at 12:50 am
The latest compromise on the Senate’s CLARITY Act is drawing fresh attention across the crypto industry, as lawmakers move to restrict how platforms handle stablecoin rewards. According to reports from Eleanor Terrett, the draft proposal introduces a sweeping ban on yield offerings tied to stablecoin holdings, signalling a more cautious regulatory stance in Washington.
Ban on stablecoin yield sparks industry concerns
The proposed legislation, negotiated by Senators Thom Tillis and Angela Alsobrooks, would prohibit digital asset platforms, including exchanges and brokers, from offering any form of yield on stablecoin balances. This includes not just direct interest payments but also mechanisms deemed “economically or functionally equivalent.”
🚨NEW: New details are emerging about the latest legislative text outlining a compromise on stablecoin yield and rewards, along with early reactions from crypto industry leaders who reviewed it today.
According to an internal stakeholder email shared with me, the proposal would… https://t.co/S3BAqr5ma0
— Eleanor Terrett (@EleanorTerrett) March 24, 2026
This language has raised eyebrows among industry stakeholders, who fear it could limit innovation and revenue streams. Analysts note that stablecoin-related income is significant for major firms like Coinbase, where such offerings accounted for an estimated 19% of total revenue in 2025.
Despite the restrictions, the draft leaves room for certain “activity-based rewards,” such as loyalty perks, promotions, or subscription incentives, provided they are not tied to account balances in a way that mimics interest.
Regulators to define what’s allowed
A key feature of the proposal is the role assigned to regulators. The U.S. Securities and Exchange Commission, Commodity Futures Trading Commission, and the U.S. Department of the Treasury are tasked with jointly defining which reward structures remain permissible. They are also expected to establish anti-evasion rules within 12 months of the bill’s passage.
However, concerns persist over the ambiguity of the “economic equivalence” standard, which could be interpreted more strictly by future regulators. Critics argue this vagueness may discourage platforms from experimenting with new incentive models.
The CLARITY Act has already passed the House and been cleared by the Senate Agriculture Committee, with a Banking Committee review expected in April. Lawmakers, including Bernie Moreno, warn that delays beyond May could push comprehensive crypto legislation past the midterm elections. With bank feedback expected imminently, the final shape of the bill and its impact on the crypto economy remain in flux.
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