Senate negotiators released compromise language on stablecoin rewards Thursday, giving the CLARITY Act its best shot at a committee vote since talks stalled in January. The text, from Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD), addresses the central disagreement that had blocked the bill for months: whether stablecoin rewards should be treated like bank interest. The Senate Banking Committee could take up the measure as soon as the week of May 11.
The compromise language
The new draft tilts toward banks. It includes a broad prohibition on any reward that is economically or functionally equivalent to interest on a bank deposit. That's the line lenders drew back in January, when they argued stablecoin rewards would pull deposits out of regulated banks. Crypto firms countered that a blanket ban would protect banks from competition and kill incentives for ordinary users.
The compromise also directs regulators to write stablecoin rules, including mandatory disclosures and a list of permitted reward activities. Alex Thorn of Galaxy Digital told the press that publishing the language was a positive signal for a markup to be scheduled soon. The timing is central — an early-May markup leaves room to get the bill to President Trump before election-season gridlock sets in. Another delay could push things past the point of no return.
Coinbase flips, banks push for more
Coinbase was an important opponent of the January draft. Its reversal removes a visible industry obstacle. Faryar Shirzad, the company's chief policy officer, said the new text preserves the ability for Americans to earn rewards based on real usage of crypto platforms and networks. That was a red line for the exchange and for other crypto firms that rely on staking and other yield-like products to attract users.
The American Bankers Association, backed by 52 state bankers' associations, isn't satisfied. In a joint comment letter to the OCC, the group demanded aggressive enforcement of the yield ban and warned that most payment stablecoins are distributed through secondary exchanges and intermediaries rather than directly by issuers. The state associations are pushing regulators to close loopholes, including expanding the definition of 'related third party' to prevent what they call widespread circumvention of a narrow ban.
What comes next
The Senate Banking Committee could schedule a markup within days. If the bill clears committee, floor time is the next hurdle. The stablecoin debate isn't over — the ABA's letter makes clear that bankers will keep fighting for tighter restrictions even after the compromise. But for now, the CLARITY Act has escaped its January logjam, and the clock is ticking.
