CLARITY Act Nears Markup as Stablecoin Yield Compromise Finalized
Tech CLARITY Act Nears Markup as Stablecoin Yield Compromise FinalizedThe CLARITY Act yield compromise was finalized, signaling the bill is near passage.Issuers are banned from offering interest-like returns, but activity-based rewards are allowed.Banks warn of a 20% impact on lending; lawmakers proceed without changes. Senator Cynthia Lummis said the latest version of the CLARITY Act is close to completion after months of negotiation. She stated the finalized bipartisan text indicates a compromise on stablecoin yield that both sides can accept. The update follows a joint statement from Senators Thom Tillis and Angela Alsobrooks confirming that the deal on stablecoin yield rules is now locked. The compromise focuses on limiting risks to bank deposits while allowing crypto firms to continue operating with defined reward structures. Tillis described the outcome as a consensus-based product shaped through negotiations with multiple stakeholders. He added that the process aimed to prevent delays and move the bill forward. Yield Ban Targets Deposit Flight Risk The core provision in the compromise blocks stablecoin issuers from offering rewards that function like interest on bank deposits. Lawmakers termed this as a direct response to concerns from the banking sector about deposit flight. At the same time, the bill allows activity-based rewards. Crypto platforms can still offer