According to final text released by Senators Thom Tillis and Angela Alsobrooks, the CLARITY Act would ban interest for merely holding stablecoins while allowing rewards tied to bona fide crypto activity, lifting market expectations for progress.
Senate Banking Committee Chairman Tim Scott remains a central figure as the Coinbase-backed CLARITY Act gains momentum after Senators Thom Tillis and Angela Alsobrooks released final compromise language on stablecoin rewards. The new text bars crypto firms from paying interest simply for holding stablecoins, addressing concerns that such products could resemble bank deposits, but permits rewards linked to what the bill calls bona fide activities on crypto platforms or networks. Following the release, Polymarket traders raised the odds of the bill becoming law in 2026 to 55%, up nine percentage points in one day. Galaxy Digital’s Alex Thorn said the final language suggests the Senate Banking Committee could schedule a markup as soon as the week of May 11, though he also warned banks may intensify opposition once the bill advances. Industry reaction was mixed, with Coinbase executives supporting the compromise while critics argued it still blocks Americans from earning risk-free yield on dollar holdings outside the banking system.