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ToggleThe CLARITY Act, a comprehensive cryptocurrency regulatory framework in the United States , has finally achieved a historic compromise amidst fierce competition between traditional banking and the crypto industry.
According to an exclusive report and the latest news published by Punchbowl News reporter Brendan Pedersen on May 1, Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks have reached a final compromise agreement on the most controversial "stablecoin yields and rewards" clause. This breakthrough is considered a key milestone in the Senate's upcoming markup review of the cryptocurrency bill in May.
"Deposit-like interest rates" are prohibited; equivalence testing is introduced.
In negotiations over the past few months, traditional banks have strongly protested against crypto platforms offering high-interest stablecoin products similar to bank deposits, arguing that this constitutes regulatory arbitrage and unfair competition. According to the final terms of the agreement obtained by Punchbowl News, this compromise clearly defines the boundaries:
- The bill explicitly prohibits crypto companies from providing stablecoin-related rewards in a manner that is "economically or functionally equivalent to paying interest or returns on interest-bearing bank deposits."
- Conditional opening of balance rewards: Balances on the crypto platform can still be used to offer rewards, provided that the company and product pass a rigorous "equivalence test" .
- Establishing a new regulatory system: The bill instructs regulators to propose a series of new stablecoin regulatory measures, including establishing a brand-new "stablecoin disclosure system" and listing a "list of permitted incentive activities" to provide operators with a legal framework.
Coinbase says: We've saved the most important link.
Coinbase, the largest cryptocurrency exchange in the US, gave a positive review of the compromise. Coinbase's Chief Policy Officer, Faryar Shirzad, subsequently confirmed the release of the final terms on the social media platform X, and shared the hardships behind the negotiations:
"This debate is largely based on imagined risks, rather than real evidence or a true understanding of how cryptocurrencies actually work."
He revealed that this compromise was the result of months of negotiations involving the White House, the Treasury Department, Republicans on the Senate Banking Committee, and Senators Tillis and Alsobrooks. Shirzad emphasized:
"Ultimately, the bank succeeded in gaining more restrictions on rewards, but we protected the most important part—that Americans can earn rewards based on actual usage of the crypto platform and network."
Calls for the advancement of DeFi and tokenization legislation to complete CLARITY!
Shirzad believes that this compromise not only protects consumer rights but also ensures that the United States can maintain its leading position at the forefront of the financial system, which is crucial in today's highly competitive geopolitical era.
With the most contentious issue of stablecoin yields temporarily resolved, Shirzad urged industry and lawmakers to broaden their perspectives. He pointed out that while the stablecoin debate raged on, Congress also made significant progress in other key areas such as token classification, decentralized finance (DeFi), and asset tokenization .
"Now that this issue has been resolved, it's time to focus on broader legislation... It's time to finish CLARITY."
With the Senate's token review process approaching in May, this bill, which affects trillions of dollars in the global crypto market, is moving toward formal legislation at an unprecedented pace.
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