Crypto Industry Throws Support Behind CLARITY Act Yield Compromise: Outlook for Resolving Stablecoin Legislative Deadlock

After months of legislative deadlock, the U.S. crypto industry has attempted a significant strategic shift by supporting a compromise on stablecoin yield provisions in the CLARITY Act. This support from major companies, led by Coinbase, has served as a catalyst for narrowing differences over reward methods for digital dollar-pegged tokens, clearing the way for the Senate Banking Committee to enter formal markup (bill review) procedures by May 2026.

The core of this compromise is a shift from the existing method of providing passive holding yields to a reward system based on actual transactions or utility. Industry leaders expect this regulatory clarity to accelerate the integration of stablecoins into the mainstream and are urging swift action from Congress.

As of early May 2026, the atmosphere in the crypto industry has shifted sharply toward market stabilization through regulatory acceptance. Coinbase CEO Brian Armstrong strongly urged the Senate Banking Committee to proceed with the markup immediately, now that the yield debate has been settled. This reflects the industry's judgment that operating under clear guidelines is more advantageous than persistent regulatory uncertainty.

Now that the yield debate is resolved, the Senate Banking Committee should immediately conduct the markup of the CLARITY Act.

The crux of this compromise lies in redefining the benefits provided to stablecoin holders as 'activity-based rewards' rather than 'passive deposit yields.' The new bill text restricts interest payments for simple holding, instead allowing rewards only for activities based on actual transactions or network contributions. This is a result of regulators' intentions to block financial system risks that could arise if stablecoins function similarly to bank deposits.

Definition of the 'Buy and Use' Model and Technical Changes

The 'buy and use' model accepted by the industry focuses on increasing the utility of stablecoins. While direct cash or token payments are strictly limited, incentives linked to verified user activity or ecosystem transactions are considered 'bona fide activities' and are permitted. This distinction provides a legal framework for stablecoin issuers to provide value to users without a traditional banking license.

• Announcement of the official markup date by Chairman Tim Scott
• Senate Banking Committee's bill review and voting process
• Finalization of the revised stablecoin yield text
• Review of consistency with the Office of the Comptroller of the Currency (OCC) stablecoin rules

However, not all industry groups fully agree with this compromise. The Crypto Council for Innovation (CCI) expressed concern that the scope of the yield prohibition clause is too broad and could stifle innovation. The CCI pointed out that if certain forms of reward systems are blocked at the source, the competitiveness of stablecoins could be weakened, emphasizing the need for more flexible interpretation during the detailed enforcement decree stage of the bill.

In terms of the legislative schedule, the roles of Senators Tim Scott and Thom Tillis are drawing attention. Although the markup schedule was delayed throughout early 2026, the release of the revised yield-related text is interpreted as a strong signal that a committee vote is imminent. Especially with the OCC pursuing stablecoin rules independently of legislation, the progress of the CLARITY Act will be an important move for Congress to secure regulatory leadership.

The CLARITY Act is a follow-up piece of legislation that inherits the achievements of the GENIUS Act, which established the legal definition of stablecoins in the past. While the GENIUS Act provided the institutional basis for dollar-pegged tokens, the CLARITY Act focuses on narrowing the scope of their utility and ensuring financial stability through yield restrictions. The industry evaluates this regulatory trend as a process of transforming stablecoins from simple investment vehicles into practical means of payment.

From a legal perspective, this compromise draws a clear line between 'permitted rewards' and 'deposit yields.' This provides a path for stablecoin issuers to expand their user ecosystems while avoiding complex regulations of securities or banking laws. At the same time, it gives regulators tools to manage potential threats that stablecoins could pose to monetary policy or the financial system.

The committee vote, expected around mid-May 2026, is projected to be a watershed moment determining the stablecoin regulatory landscape in the U.S. If the bill passes the committee, stablecoin issuers will have to significantly restructure their business models to align with the new reward system. While this may be an operational burden in the short term, it is expected to act as a catalyst for accelerating the entry of the crypto market into mainstream finance in the long term.

This legislative process goes beyond a technical definition of yield; it is a process of finding answers on how the crypto industry can achieve sustainable growth within the institutional framework. If the compromise between regulators and the industry bears fruit, 2026 will be recorded as the most important turning point in the history of U.S. crypto regulation.