The Senate's latest draft of the Digital Asset Market Clarity Act would ban yield payments for merely holding stablecoins, according to insiders who reviewed the text in a closed Capitol Hill session.
Senators Angela Alsobrooks and Thom Tillis introduced language that explicitly bars any stablecoin reward structure resembling bank deposit interest-a key demand from traditional banking groups concerned about competitive threats to lending.
However, the bill permits rewards tied to user activity, not balances. The mechanics of what qualifies remain undefined, leaving uncertainty for crypto firms.
This compromise aims to unblock the bill’s path through the Senate Banking Committee. A version already passed the House last year, and another cleared the Senate Agriculture Committee.
Separately, Democrats continue pushing for DeFi oversight safeguards and a ban on senior U.S. officials personally profiting from crypto-widely seen as targeting former President Donald Trump.
The legislation follows the 2025 GENIUS Act, which established the first U.S. stablecoin framework. Industry leaders view the Clarity Act as the critical next step to draw institutional capital by ending regulatory ambiguity.