Industry leaders in the crypto ecosystem are working on a new proposal to suggest a different approach to the CLARITY Act after firms such as cryptocurrency exchange Coinbase expressed dissatisfaction with the stablecoin yield agreement. This effort is emerging right as the Senate prepares to release a draft of the crypto bill for discussion in April.

Regarding the situation, crypto journalist Eleanor Terrett shared a post on X with information from Coinbase’s Global Head of Investment Research, David Duong. 

In the post, Duong claimed that industry leaders are collaborating on a counterproposal to underscore the need to amend the crypto bill to protect consumers and ensure the sustainability of reward programs.

Crypto firms raise concerns regarding the stablecoin yield agreement

The stablecoin yield agreement severely limits crypto companies’ ability to reward customers with stablecoins. To be precise, it prohibits yields on inactive balances and restricts permissible incentives to activity-linked rewards that are not functionally equivalent to bank interest. Following these limitations, Coinbase rejected this agreement. The crypto exchange told the Senate it found it difficult to support the latest version of the bill, citing significant concerns about revised regulations on stablecoin yields. 

Regarding these concerns, Terrett noted that, “insiders familiar with the draft indicated it would stop platforms from offering yield directly or indirectly for holding a stablecoin or in ways resembling bank deposits,” further adding that, “One industry leader who reviewed the text today tells me this draft is a ‘departure’ from previous discussions with the White House.” Afterwards, leaders warned that the vague “economic equivalence” standard could be interpreted more strictly by future regulators. As a result, the entire crypto ecosystem was greatly impacted.

Responding to this situation, United States Senator Thom Tillis’ office noted that they intend to make the draft legislation public next week. This draft will cover details regarding stablecoin rewards and yields, while stakeholder discussions are still in progress, according to Terrett.

This was shortly after Senator Tillis and Senator Angela Alsobrooks reached an agreement with the White House to include language in the CLARITY Act that would ease tensions between banks and the crypto industry over stablecoin rewards last week.

In the meantime, Tim Scott, a US senator for South Carolina and the current Chairman of the Senate Banking Committee, applauded the progress of the crypto bill, noting that both Democrats and Republicans are working jointly on mutually agreeable terms to advance the CLARITY Act.

The CLARITY Act’s approval process faces significant challenges 

The comprehensive CLARITY Act, developed over several years, passed the House in July 2025 with bipartisan support. The legislation’s goal is to divide oversight responsibilities between the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC), and to classify certain blockchain-related assets under commodity regulations. 

Nonetheless, stablecoin yield remains a significant problem in the industry, hindering the bill’s progress. At this point, analysts noted that the new compromise gives the bill a boost but does not guarantee approval. 

This is because lawmakers must still pass the bill through committee, win a full Senate vote, reconcile different versions, and secure presidential approval.

Moreover, Terrett alleged that yield is not the sole outstanding concern. Based on her argument, the push to regulate decentralized finance (DeFi) while upholding Anti-Money Laundering (AML) standards and ethical guidelines continues to complicate an already overloaded legislative roadmap.  At this particular moment, bank representatives were scheduled to review the document.

On the other hand, Washington released a statement dated March 25, 2026, noting that, “earning yield just for holding stablecoins is not an option — but what will take its place is still being worked out.”

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