Plans to release revised stablecoin yield language in the Clarity Act have been delayed, extending uncertainty around one of the bill’s most divisive provisions.
Summary
- Release of the Clarity Act stablecoin yield draft has been pushed back as lawmakers wait for committee timing clarity.
- Draft language still restricts rewards on idle balances while allowing yield tied to transaction activity.
According to a report from Politico, Senator Thom Tillis said the updated draft is unlikely to be made public this week, as lawmakers wait for clarity on the timing of the Senate Banking Committee’s upcoming markup before proceeding with a release.
Meanwhile, a source familiar with the discussions told The Block that legislative teams are still holding meetings with bank trade groups and crypto firms, suggesting that negotiations remain active despite earlier expectations of an imminent rollout.
The draft, in its current form, continues to follow earlier proposals that would block rewards on idle stablecoin balances held in accounts, while allowing yield tied to transactional activity.
According to the source, making major revisions at this stage would be difficult, pointing to a text that is largely settled even as political agreement remains out of reach.
Work on the language has been led by Tillis in coordination with Angela Alsobrooks, as both lawmakers attempt to settle a dispute that has held up progress on the Digital Asset Market Clarity Act well beyond its initial end of 2025 target.
Earlier remarks from Tillis had suggested the proposal would be released this week, with the senator stating, “I think the language has come together well,” as negotiations appeared to move toward a compromise. That timeline now appears to have slipped, underscoring how difficult it has been to align competing interests.
Tensions around stablecoin rewards have emerged as the most contentious issue in the bill. While the GENIUS Act, passed last year, prevents issuers from paying interest directly to holders, it leaves room for third-party platforms such as exchanges to offer yield, a gap the Clarity Act is attempting to address.
U.S. banks have warned that allowing such rewards could draw deposits away from traditional institutions and weaken funding stability.
Crypto companies, including Coinbase, have pushed back, arguing that banning rewards would limit product development and overlook opportunities for banks to participate in the same market.
Efforts to close the gap have included a series of closed-door meetings convened by the White House since the start of the year. Those talks have yet to produce an agreement, with both sides continuing to hold firm positions as lawmakers weigh how far the legislation should go in restricting yield-bearing stablecoin products.
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