Draft Senate "Clarity Act" would curb stablecoin yield payments

A new draft of the U.S. Senate's Digital Asset Market Clarity Act is drawing pushback from the crypto industry over how it treats stablecoin yields, CoinDesk reported. Industry sources said the language is both overly narrow and difficult to interpret. In revisions released last Friday by Senators Angela Alsobrooks and Thom Tillis, the draft would explicitly bar users from earning yield on stablecoin balances and would limit any arrangements that resemble interest paid on bank deposits. The text would allow only activity-based reward programs, but it does not spell out what would qualify. Crypto industry representatives reviewed the updated language for the first time during a closed-door meeting on Capitol Hill on Monday. Banking groups have argued that stablecoin yields should not compete with interest-bearing deposits, warning such products could weaken banks' capacity to lend. The latest draft reflects a compromise shaped by those concerns.