Coinbase says Senate negotiators have reached an agreement on a controversial crypto bill provision tied to stablecoin rewards.
Summary
- Coinbase says the negotiators have reached a consensus on the awards, easing a significant delay in the CLARITY Act.
- Banks have secured restrictions on deposit-like withdrawals, while crypto firms have kept activity-based user rewards under the rules.
- The Senate’s markup process now depends on committee support, regulatory details, and broad political support.
The deal could help the CLARITY Act move to the Senate floor after months of delays.
According to a Reuters report, the debate centers on whether crypto firms and stablecoin issuers should offer rewards to customers. Banks are opposed to the offer because they say yield-style rewards would drive deposits away from traditional lenders.
Crypto companies argued that they needed a place to reward users for actual platform activity. Coinbase said the new language protects that ability while adding more restrictions around rewards that look like bank interest.
Coinbase Chief Policy Officer Faryar Shirzad said, “In the end, banks were able to get more restrictions on rewards, but we protected what’s important.” He added that crypto platforms maintain the ability of Americans to earn rewards based on the actual use of crypto platforms and networks.
Banks win yield limits similar to deposits
This agreement was negotiated with Senators Thom Tillis and Angela Alsobrooks, according to reports. The language would prohibit rewards that are offered in an economic manner or that work in proportion to the interest or yield of a bank deposit.
Those names gave the banks half of what they wanted. It prevents crypto firms from offering rewards that closely reflect savings account interest, while leaving room for activity-based rewards.
The agreement also calls for regulators to create rules on stablecoin disclosures and define which reward functions are still allowed. That move could determine how exchanges, stablecoin issuers, and payment firms design reward systems.
The CLARITY Act may return to caps
The agreement could pave the way for the CLARITY Act to move forward in the Senate. The bill aims to create clear US rules for digital assets and explain how federal agencies can oversee crypto markets.
Crypto.news reported that the Senate Banking Committee directed the marker during the week of May 11. The SEC is also planning a May roundtable tied to the CLARITY Act and the structure of the digital asset market.
The roundtable follows previous work by the SEC and the CFTC on digital asset taxonomy. Crypto.news reported that agencies have named 16 digital assets as assets in the framework that the CLARITY Act could become federal law.
The prize deal removes one hurdle, but the bill still faces political tests. Some Democrats have expressed concern over the crypto controversy tied to the Trump family, while other lawmakers remain focused on law enforcement and consumer protection issues.
