US EditionCoinbase says deal reached on key provision of crypto bill
The compromise would bar stablecoin issuers from paying bank-like yield while preserving rewards tied to real crypto activity, Coinbase said.
- On Friday, Senators Thom Tillis and Angela Alsobrooks released compromise language for the Clarity Act, banning stablecoin issuers from paying interest equivalent to bank deposits while preserving rewards tied to bona fide activities.
- Negotiators struck this deal after a Senate Banking Committee markup was postponed in January, resolving the primary obstacle that stalled the legislation while bank lobbyists and crypto insiders debated the yield provision.
- Firms must now restructure reward programs from a "buy and hold" system to a "buy and use" model to meet transaction caveats, with the Treasury Department and Commodity Futures Trading Commission mandated to write rules within a year.
- Coinbase Chief Policy Officer Faryar Shirzad said the deal "protected what matters," while Circle Chief Strategy Officer Dante Disparte endorsed the compromise, urging the Senate Banking Committee to move forward with a markup.
- While industry trade groups welcomed the progress, some observers note the rulemaking section provides regulators latitude that could define future yield products, marking a critical step toward establishing a clear legal framework for digital assets.
42 Articles
42 Articles
‘Go Time’ For Crypto Bill
The US CLARITY Act, which aims to provide the US crypto industry with more regulatory clarity, could now move closer to becoming law after new stablecoin yield provisions were published, according to Coinbase chief legal officer Faryar Shirzad. “It’s time to get CLARITY done,” Shirzad said in an X post on Friday, after US Senator Thom Tillis and US Senator Angela Alsobrooks published the final text aimed at settling the stablecoin yield dispute …
Coinbase and Senate Leaders Reach Breakthrough Compromise on Stablecoin Rewards To Advance Clarity Act for US Crypto Regulation
Coinbase and Senate leaders have reached a compromise on stablecoin reward provisions, resolving a standoff with the banking lobby. The deal prohibits rewards that mimic bank interest but allows for usage-based incentives. This agreement removes a major obstacle for the Clarity Act. Coinbase and Senate Leaders Reach Breakthrough Compromise on Stablecoin Rewards To Advance Clarity Act for US Crypto Regulation.
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