Major breakthrough in the U.S. CLARITY Act! Coinbase reaches stablecoin agreement, ending months of deadlock at last

The U.S. Congress has reached an agreement on stablecoin yield provisions, advancing the progress of the CLARITY Act. The new regulation bans the issuance of interest-like deposits but retains room for behavioral rewards such as payments and staking.

Consensus on stablecoin yield provisions, months-long deadlock loosens

A key breakthrough has occurred in the U.S. cryptocurrency legislation process. Coinbase recently confirmed that lawmakers have reached an agreement on the long-debated stablecoin yield provisions, paving the way for the CLARITY Act to return to the Senate for review.

This agreement was negotiated primarily by Senator Thom Tillis and Angela Alsobrooks, ending months of tug-of-war between the banking industry and the crypto sector. The core controversy centers on whether crypto platforms can offer interest-like or yield rewards to stablecoin holders. Banking industry representatives argue that such products could divert traditional deposits and impact financial stability; meanwhile, crypto companies contend that reasonable reward systems are vital tools to promote user adoption.

In the latest compromise, both sides made concessions, restarting the previously stalled legislative process. The market generally interprets this as an important signal that the regulatory framework is gradually taking shape.

Ban interest-like yield, retain space for behavioral rewards

According to Punchbowl News, the latest agreement explicitly prohibits stablecoin service providers from issuing any form of “interest equivalent to bank deposits.” This means crypto platforms cannot simply pay rewards to users holding stablecoins to avoid direct competition with traditional banking deposit products.

However, the provisions also preserve “behavior- or transaction-based reward mechanisms,” such as rewards for payments, transfers, liquidity provision, staking, or community governance activities. This design allows crypto platforms to continue issuing rewards based on actual usage scenarios rather than solely relying on asset holdings.

Faryar Shirzad, Policy Director at Coinbase, stated that although the final version introduces more restrictions, it still retains key flexibility to ensure users can receive rewards through active participation in the crypto network. The provisions even allow some reward calculations to consider holding time and asset size, leaving room for platforms to design business models.

Image source: X/@faryarshirzad Coinbase Policy Director Faryar Shirzad states that although the final version increases restrictions, it still maintains key flexibility, ensuring users can earn rewards through active participation in the crypto network.

Expanded regulatory responsibilities, SEC and CFTC to draft detailed rules

In addition to the yield provisions, the new agreement also requires regulators to develop more comprehensive stablecoin regulations within a year, including disclosure requirements, permitted reward types, and market behavior boundaries. The U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, and the U.S. Department of the Treasury will jointly be responsible for drafting these rules.

The new provisions also emphasize that stablecoins must not be promoted as backed by the U.S. government or insured deposits, with violations potentially resulting in civil fines of up to $5 million. Furthermore, the Federal Reserve and multiple financial regulators are required to submit reports to Congress within two years, assessing the impact of stablecoins on bank deposits, the Treasury bond market, and financial stability.

These requirements indicate that the legislative direction is not only focused on innovation but also aims to strengthen past regulatory gray areas to prevent systemic risks from accumulating.

CLARITY Act resumes review, crypto regulation enters a critical moment

This agreement clears major obstacles for the CLARITY Act, likely prompting the Senate Banking Committee to reschedule its review process. The bill aims to establish an overall framework for the digital asset market, clearly defining the responsibilities of various regulatory agencies and increasing industry transparency.

However, the bill still faces multiple political and policy challenges, including conflicts of interest between the crypto industry and politicians, DeFi regulation, and anti-money laundering issues. Some lawmakers are also concerned that rapid crypto development may outpace current legal frameworks, increasing enforcement difficulties.

Market observers note that if the bill passes smoothly, it could provide long-term policy certainty for the U.S. crypto industry and accelerate the mainstream adoption of stablecoins and blockchain applications. Nonetheless, due to competing interests, the final version may still undergo adjustments, and legislative progress remains to be closely watched.

This content is summarized by Crypto Agent from various sources, reviewed and edited by Crypto City. It is still in the training phase and may contain logical biases or informational errors. The content is for reference only and should not be considered investment advice.