Senators Thom Tillis and Angela Alsobrooks have reached a compromise regarding the yield on stablecoins in the CLARITY Act, a bill aimed at regulating the U.S. cryptocurrency market. Punchbowl News reports on the finalized section of the document.
SCOOP: Sens. Tillis and Alsobrooks have finalized a compromise on stablecoin yield. Punchbowl News has the text
— Brendan Pedersen (@BrendanPedersen) May 1, 2026
— bans rewards that are “economically or functionally equivalent” to deposit interest
— balances *can* be used for rewards if companies clear the “equivalent” test pic.twitter.com/7dHsS8BnpT
The text states that no crypto company can pay “any interest or yield” to clients solely for holding stablecoins, akin to a bank deposit or any similar product.
Under the new wording, the ban on paying rewards applies not only to issuers but also to third-party platforms, such as cryptocurrency exchanges. They cannot pay income on coins held in inactive balances.
However, the document includes provisions allowing companies to offer rewards tied to “bona fide activities.”
It also calls on regulators to propose a new set of rules for stablecoins, including the development of a disclosure regime and a list of permissible activities related to additional income.
Community Reaction
Industry representatives have had mixed reactions to the final version of the text, though many agree that this step has significantly advanced the bill's chances of passage.
“In the end, banks succeeded in tightening restrictions on rewards, but we preserved what truly matters—the ability for Americans to earn rewards for the actual use of crypto platforms and networks,” said Coinbase's Chief Counsel Faryar Shirzad.
Meanwhile, Helius Labs CEO Mert Mumtaz expressed confusion over why investors are “not allowed to earn risk-free returns on their funds without using banks.”
Alex Thorn, head of corporate research at Galaxy Digital, stated that the publication of the text indicates the Senate Banking Committee's readiness to schedule a date for reviewing the document, likely in the week following May 11.
However, Thorn warned that he expects “increased opposition from banks.”
Recall that in April, Senator Tillis mentioned the possibility of delaying the review of the CLARITY Act.