Crypto industry groups this week endorsed a key compromise in the CLARITY Act, urging the Senate Banking Committee to start formal markup next week. The deal requires firms to restructure yield reward programs from 'buy and hold' to 'buy and use' models. It's a pivotal moment for the first major crypto regulatory bill in this Congress.
Required Model Shift
Under the agreement, crypto platforms must now design reward programs around actual token utility rather than passive holdings. The change aims to prevent what regulators call 'empty yield' schemes. Firms will have to verify user engagement with services before distributing rewards.
Industry's Calculated Support
The Crypto Council for Innovation publicly backed the compromise while noting concerns about the bill's broad ban on certain reward structures. Other trade associations joined the push for swift committee action, signaling industry leaders see this as the best possible outcome. They're not celebrating—they're relieved the bill didn't die in committee.
Committee Timing Pressures
Senate Banking Committee staff confirmed markup will begin early next week, just days before Congress adjourns for recess. Lawmakers face tight deadlines to advance the bill this session. The timing creates pressure to keep the yield language intact amid last-minute lobbying from both sides.
The committee's vote next Wednesday sets the stage for floor debate. If the markup concludes on schedule, the full Senate could consider the bill before June 15.
