Angela Alsobrooks

US Senators Thom Tillis and Angela Alsobrooks oppose banks’ pushback on stablecoin yield compromise. They signal the deal is final to advance the long-stalled crypto market structure bill and pass the CLARITY Act.

US Senators Signal Final Deal on Stablecoin Yield Compromise in CLARITY Act

On May 5, Senators Thom Tillis and Angela Alsobrooks released a joint statement on the stablecoin yield compromise amid pushback from the banking industry. The statement comes after a bipartisan deal on Section 404 in the CLARITY Act.

Senators signal the deal is final, claiming both sides have worked to address the banking industry’s concerns over deposit flight. Senate negotiators reached a compromise on stablecoin yields rules in the CLARITY Act last week.

“We have worked in good faith with all sides throughout this process to encourage compromise and to avoid letting the perfect become the enemy of the good. The result is a substantially improved, consensus-based product,” said Senator Tillis.

He added that the deal prohibits stablecoin yields or rewards that are “economically or functionally equivalent” to interests on bank deposits. This addresses the banking industry’s core concern over deposit flight risk in the CLARITY Act.

The compromise allows crypto companies to offer activity-based or transaction-based rewards. Crypto companies can reward participation, such as trading, staking, or other on-platform activities.

In addition, Senator Tillis signaled support for passing the CLARITY Act, providing the crypto regulations needed to foster innovation. He added that some in the banking industry may still oppose, but “we respectfully agree to disagree.”

Senators and Crypto Industry Reactions

Banking groups, including the American Bankers Association and others, criticized a compromise on stablecoin yield. They argue that the legislative text language still “falls short” of protecting bank deposits.

Senator Tim Scott, Chairman of the US Senate Banking Committee, on Monday said “We are making real progress on digital asset market legislation and restoring confidence in our economy.” He also pointed to pushing for the CLARITY Act markup in May.

In response to banks’ pushback, Senator Cynthia Lummis asserts the stablecoin yield compromise is “finalized.” She highlighted months of hard work to reach a bipartisan compromise on stablecoin yield, adding that the CLARITY Act’s passage is near.

Coinbase CLO Paul Grewal reacted to the statement today, congratulating the banking trades for bringing Republicans and Democrats together. Coinbase CEO Brian Armstrong urged the crypto bill markup immediately.

With the stablecoin yield issue largely resolved, the Senate Banking Committee could hold a markup as early as mid or late May, potentially leading to a full Senate vote in June or July. If passed, the crypto market structure bill would head to President Trump, who confirmed to pass the CLARITY Act immediately.

Polymarket odds for the CLARITY Act signed into law in 2026 have climbed to 70% for the first time in a month. Circle stock price surged 20% as Senators signaled the stablecoin yield compromise is final.