Senators in the United States have released final provisions of the CLARITY Act, bringing the bill closer to a congressional vote.

Key provisions

The draft bans paying interest for mere custody of stablecoins, while allowing rewards tied to active usage or services provided to holders.

Senators framed this distinction to address regulatory concerns raised by banks about deposit-like yields on digital tokens.

Legislative timeline

According to lawmakers, the clarification reduced a primary point of contention with banking interests and may expedite committee action.

Congressional hearings on the bill could begin in May as leaders prepare for floor consideration and stakeholder testimony.

Market impact

Market participants and issuers are assessing how the prohibition would change product structures, compliance frameworks and customer incentives.

Industry groups previously argued that yield restrictions could limit competitiveness versus traditional bank deposits and affect onboarding flows.

Text specifics

The released language specifies bans on compensating holders for passive balances but permits rewards tied to transactional activity or platform engagement.

Lawmakers emphasized that the measure focuses on economic functions rather than asset labels to reduce regulatory arbitrage across payment systems.

Next steps

If hearings commence in May, congressional committees will collect testimony from regulators, banks and issuers before moving the bill to a vote.

Passage in either chamber would require negotiation over technical terms and interagency coordination to finalize oversight authorities and compliance expectations.