Senate Banking Committee Unveils Amended CLARITY Act expanding to Stablecoin Yield Restrictions

The U.S. Senate Banking Committee, led by Chairman Tim Scott, has released an amended version of the CLARITY Act ahead of its scheduled markup this week.

The updated bill reflects months of negotiations with Democratic lawmakers, suggesting growing bipartisan support. Committee members have until January 13 to submit final amendments before the markup on Thursday.

A major change in the revised bill is the expanded prohibition on crypto firms distributing yield or interest to customers for simply holding stablecoins. Previously, under the GENIUS Act, this restriction mainly applied to stablecoin issuers. The amended CLARITY Act now extends the same rule to crypto service providers, such as exchanges and other platforms that offer custody or wallet services.

Under the new language, crypto firms are not allowed to pay interest, rewards, or any form of yield—whether in cash, tokens, or other benefits—solely for holding a payment stablecoin. However, the bill still permits rewards linked to specific activities like staking, providing liquidity, using stablecoins as collateral, or participating in governance.

Crypto Firms Push Back Against CLARITY Act

This shift comes after months of lobbying by traditional banking groups, who have pushed lawmakers to limit stablecoin rewards and prevent crypto firms from offering interest-like products. Banks argue that such rewards resemble unregulated banking services and could pose financial risks. As a result, lawmakers expanded the restrictions beyond stablecoin issuers to include crypto service providers.

Crypto companies, especially Coinbase, have strongly opposed these provisions. Coinbase has warned that the restrictions could harm innovation in the U.S. and make it harder for crypto platforms to compete globally. The exchange has even suggested it may reconsider its support for the CLARITY Act if the current rules remain.

Legal expert Jake Chervinsky also commented on the amended bill, saying significant changes have been made since the draft was released last September. With the amendment deadline approaching, he noted that lawmakers are scrambling to fix multiple critical issues before the final markup.