Sen. Thom Tillis said he expects to release revised draft language this week intended to resolve a months-long dispute between banks and crypto firms over how stablecoin products may offer yield under the proposed CLARITY Act, with the goal of moving the measure toward a Senate Banking Committee markup.
Key points
- Sen. Thom Tillis plans to publish updated CLARITY Act language this week.
- The revisions aim to bridge differences between banks and crypto companies on stablecoin yield provisions.
- Backers are targeting a markup in the Senate Banking, Housing, and Urban Affairs Committee.
What’s at stake
The core dispute centers on whether, and under what conditions, stablecoin issuers and platforms can provide yield or share reserve earnings with customers. Banks have raised concerns about deposit-like products operating outside traditional prudential oversight, while crypto firms seek clear rules that permit competitive returns with appropriate disclosures and safeguards.
The CLARITY Act is expected to set federal standards for payment stablecoins, including requirements around reserves, supervision, and consumer protections. A compromise on yield could determine how these tokens are structured, marketed, and integrated into the broader financial system.
Path to committee markup
Tillis said the updated draft is designed to end the policy impasse that has stalled the bill for months. If the new language satisfies key stakeholders, it could pave the way for a markup in the Senate Banking, Housing, and Urban Affairs Committee—an essential step before any potential floor consideration.
Why it matters for markets
Regulatory clarity on stablecoin yield would have implications for issuers, custodians, and trading platforms, as well as for banks exploring tokenized liabilities and payment rails. Clear guardrails could influence product design, risk management, and consumer disclosures across U.S. dollar–pegged stablecoins, shaping how these instruments compete with traditional cash and cash-like alternatives.