Senators Reach Stablecoin Yield Deal, Easing Path for CLARITY Act

Highlights:

• Senators Alsobrooks and Tillis reached a stablecoin rewards deal inside the CLARITY Act bill.
• Crypto firms can still offer activity-based rewards, but passive interest on stablecoins is now banned.
• Coinbase backed the new compromise, which could finally push the Senate bill forward this month.

Coinbase confirmed on Friday that U.S. lawmakers have reached a deal on a key stablecoin rewards issue in the CLARITY Act. The update came after Punchbowl News reported new compromise text from Senator Thom Tillis, a Republican from North Carolina, and Senator Angela Alsobrooks, a Democrat from Maryland. Coinbase Chief Policy Officer Faryar Shirzad supported the agreement in a post on X, saying the crypto industry protected Americans’ ability to earn rewards through the real use of crypto platforms and networks.

The compromise focuses on one of the most debated parts of the crypto market structure bill. Lawmakers have been trying to decide whether crypto companies should be allowed to offer rewards connected to stablecoins. Banks have pushed back against these rewards because they fear such products could pull money away from bank deposits. Crypto firms, however, say they need these rewards to attract users and compete fairly.

The final rewards text in the CLARITY Act is now public.

We’ve been clear throughout this process: much of this debate was based on imagined risks, not real evidence, nor was it based on a real understanding of how crypto actually works.

Nevertheless, the crypto industry showed… https://t.co/XoQ7Zp1Y39

— Faryar Shirzad 🛡️ (@faryarshirzad) May 1, 2026

Stablecoin Rewards Face New Limits

Under the compromise text reported by Punchbowl News, crypto companies cannot offer rewards on stablecoin balances if those rewards work like bank deposit interest. The wording blocks rewards that are “economically or functionally equivalent” to interest or yield on an interest-bearing bank account.

The new text tries to separate passive interest from activity-based rewards. Passive interest means users earn money only by keeping stablecoins in an account. Activity-based rewards may depend on real use of crypto platforms or networks. This difference became a key issue for banks, crypto firms, and lawmakers.

Shirzad said banks won more limits on stablecoin rewards, but the crypto industry protected its main goal. He said Americans should still be able to earn rewards when they actively use crypto platforms and networks. Coinbase CEO Brian Armstrong also reacted to the compromise on X with a short message, “Mark it up.”

Coinbase’s support is important because the company did not agree with an earlier version of the text. American Banker reported that Coinbase helped stop that previous compromise. Now that Coinbase supports the latest version, the Senate may find it easier to move the CLARITY Act forward.

The compromise also tells regulators to create clearer rules for stablecoin rewards. According to Punchbowl News, the text calls for a new disclosure system for stablecoins. It also asks regulators to list which reward activities crypto firms can still offer.

The Treasury Department and the Commodity Futures Trading Commission (CFTC) would also help define the limits. Their job would be to decide when stablecoin rewards start looking too much like interest from a bank deposit.

CLARITY Act Could Move Forward After Months of Delay

The CLARITY Act still faces a long road. The House passed its version of the bill in July, but the Senate had not moved ahead because lawmakers, banks, and crypto firms were still debating key parts of the text. In January 2026, lawmakers cancelled a planned committee hearing after the stablecoin yield issue slowed talks.

Now, the new compromise may help the Senate Banking Committee move toward a markup session. In a markup, senators review the bill, make changes, and decide whether to send it forward. After that, the full Senate must pass the bill. Lawmakers would also need to match the Senate version with the House version. Then, the final bill would go to the president for approval.

The bill aims to create clearer rules for the U.S. crypto market. Crypto companies have long said unclear rules make it harder to build products and serve customers in the U.S. 

Time is also becoming a serious issue. Senator Bernie Moreno has warned that if the bill does not reach the Senate floor by May, lawmakers may delay crypto legislation until after the 2026 midterm elections. That could push the effort back by another year or more.

A clear timeline/Hail Mary plan is starting to emerge here from Senate Republicans on market structure: Sen. Bernie Moreno (R-OH) just said in a video message: “If we don’t get the Clarity Act passed by May, digital assets legislation will not pass for the foreseeable future.”… https://t.co/E8QBmSl7X9

— Sander Lutz (@sander_lutz) March 18, 2026