The CLARITY Act is inching closer to a Senate vote as lawmakers tackle one of the most challenging aspects of the legislation: how to approach stablecoin yield. However, even if the bill does not pass, crypto industry leaders are expressing confidence that the market can endure.
Chris Perkins, CEO of 250 Digital Asset Management, spoke recently on Cointelegraph’s Chain Reaction podcast, affirming that the crypto ecosystem is in a stable position, even without new legal frameworks. Perkins noted the active role of the SEC and CFTC, which are both developing policies that provide the necessary certainty and clarity for crypto businesses.
“These guys are giving us the one thing we’ve needed for a very long time – certainty, stability, and ultimately, a taxonomy,” Perkins said.
The industry has observed a significant evolution in the treatment of cryptocurrencies classified as securities. Previously, being labeled a security often led to scrutiny and enforcement actions. Perkins commented on this shift, stating:
“In the past, being a security was a death sentence. Now it is awesome to be a security.”
As the legislative landscape develops, Perkins emphasized the importance of establishing a legal framework that would be more challenging to overturn by future administrations. He stated, “It takes an act of Congress to do something – and it is even harder to unwind a law.”
The Stablecoin Yield Compromise
On May 2, Senators Thom Tillis and Angela Alsobrooks unveiled compromise text concerning stablecoin yield, marking a significant breakthrough for the CLARITY Act. The newly introduced language restricts crypto firms from providing interest or yield on stablecoin balances in a manner resembling traditional bank deposits. Instead, it permits rewards associated with genuine platform usage and transactions.
To comply, companies must pivot their reward models from ‘buy and hold’ strategies to ‘buy and use’ practices. Blockchain Association CEO Summer Mersinger lauded this development while cautioning that the absence of a legal framework can push talent and investments away from the U.S.
Dante Disparte, Chief Strategy Officer at Circle, supported the compromise, highlighting the expanding influence of USDC within payments and capital markets.
Coinbase, which has significant interests in this legislation, expressed enthusiasm after the text was released. CEO Brian Armstrong remarked, “Mark it up,” while Chief Legal Officer Paul Grewal noted that the language preserves rewards linked to authentic platform participation.
Industry Concerns Persist
The Crypto Council for Innovation endorsed the bill but raised important concerns regarding the newly proposed language. CEO Ji Hun Kim pointed out that the text extends beyond the previous GENIUS Act, affecting all digital asset market participants rather than just the issuers.
Kim still encouraged the committee to move forward, asserting that “the north star is to ensure that the U.S. can lead on crypto.”
Senator Bernie Moreno expressed optimism about the CLARITY Act passing by the end of May. Meanwhile, Senator Cynthia Lummis encapsulated the urgency of the situation by stating, “It’s now or never.”
The Senate Banking Committee had earlier postponed a markup scheduled for January, but the recent advancements have ignited hope for the bill’s final approval.
