CLARITY Act Yield Compromise Text Released, May 1, 2026
Senators Tillis and Alsobrooks released the CLARITY Act stablecoin yield text on May 1. Passive yield is banned. Activity-based rewards survive. Markup is next.
What Changed
Senators Thom Tillis and Angela Alsobrooks released the long-awaited compromise text on stablecoin yield inside the Digital Asset Market Clarity Act on May 1, 2026. The compromise prohibits crypto firms from paying customers any form of interest or yield, in cash or tokens or other consideration, solely in connection with holding a payment stablecoin. The prohibition extends to any structure that is economically or functionally equivalent to interest on a bank deposit. Activity-based rewards, tied to actual platform usage rather than passive holding, are explicitly preserved. The text directs regulators to propose a new disclosure regime and a list of permissible reward activities.
Who It Affects
Permitted payment stablecoin issuers operating in the United States. Crypto exchanges that have offered yield programs on stablecoin balances. Wallet providers that have positioned stablecoin storage as an interest-bearing product. Loyalty program operators tied to stablecoin holdings.
What to Do
Read the compromise text against current product architecture this week. The diagnostic question is whether existing yield offerings are characterized as activity-based or balance-based. Activity-based programs survive but require documentation showing which activities qualify and how rewards are attributed. Balance-based programs require restructuring before the implementation rules are written. Stablecoin issuers preparing comments on the FinCEN and OFAC NPRM before the June 9 deadline should align comment positioning with the consolidating CLARITY framework rather than arguing for a lighter-touch alternative.
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