CLARITY Act may move forward after senators reached a stablecoin yield deal, clearing a key hurdle for US crypto regulation.
A major US crypto bill moved closer to progress this week. The CLARITY Act gained fresh momentum after lawmakers released final text on stablecoin rewards. In addition, the compromise would eliminate a historical obstacle. Thus, crypto companies and investors now closely monitor the Senate’s further actions.
Stablecoin Rewards Deal Clears Key Barrier
According to Bloomberg, the primary controversy was the incentives to hold stablecoins. Cryptocurrency exchanges offered users the opportunity to gain rewards for holding tokens. The banks, however, were strongly opposed to that plan. They cautioned that deposits would abandon conventional banks and shift over to digital assets instead.
SCOOP: Sens. Tillis and Alsobrooks have finalized a compromise on stablecoin yield. Punchbowl News has the text
– bans rewards that are “economically or functionally equivalent” to deposit interest
– balances *can* be used for rewards if companies clear the “equivalent” test pic.twitter.com/7dHsS8BnpT
— Brendan Pedersen (@BrendanPedersen) May 1, 2026
Consequently, the dispute delayed the passage of more comprehensive crypto laws this year. But months of talks went on on both sides. Finally, a middle ground was achieved with new boundaries. Users can continue to earn rewards, but there are now more stringent rules.
Related reading: Senator Tillis Pushes CLARITY Act Toward Senate Markup | Live Bitcoin News
Coinbase chief legal officer Faryar Shirzad said it was time to get CLARITY done. Moreover, he said that Americans retained the right to receive rewards by using real crypto platforms.
Shirzad also reported that the deal was the result of negotiations with the White House, the Treasury officials, senators, and industry associations. Thus, advocates have become convinced that the bill will be able to proceed to the next phase shortly. That change is being considered as a green light to move forward. The deal was announced by Bloomberg on May 1.
Senate Vote Path and Remaining Challenges
A Senate Banking Committee markup may be the next big thing. It is reported that it could occur in the week of May 11, 2026. A full Senate vote could be considered there in June or July. Thus, the next few weeks can be decisive.
Polymarket, a prediction platform, experienced increased confidence following the release of the text. The bill had odds of becoming law in 2026, which were reported to be 55%. That was an increase of 9 percent following the announcement. Markets are not formal polling but tend to indicate investor sentiment.
In the meantime, Brian Armstrong indicated his support for proceeding with the bill. Harder versions had been previously criticized by Coinbase. Today, the leaders of the company seem to be more content with the new terms of compromise and the new language.
However, there are still several challenges to overcome before any signing. The Senate Banking version needs to be combined with the Senate Agriculture version. Moreover, both Senate versions will have to be consistent with a House bill enacted in July 2025. That process could take time.
There are also other debates on the rules and ethics standards of decentralized finance. Thus, the stablecoin rewards are not the only challenging issues that lawmakers have to negotiate. During the committee stage, some banking groups might also re-exert pressure.
Even so, the latest agreement changed the political mood. It minimized one of the largest controversies that were stalling the bill. With the momentum, the CLARITY Act may turn into the most significant US crypto law initiative in years. The Senate action now is the most important to markets, firms, and users.
