The most significant piece of crypto market structure legislation in years nearly died on the table before a handful of senators pulled it back from the brink. The CLARITY Act, formally the Digital Asset Market Clarity Act, squeaked through the Senate Banking Committee on May 14 with a 15-9 vote, surviving only because of a last-minute bipartisan compromise that included seven amendments crafted to keep wavering members from walking away.
Two Democrats crossed the aisle to join Republicans in advancing the bill.
Seven amendments, one very fragile coalition
The compromise that saved the bill involved seven amendments adopted during the markup session. The most consequential addresses a surprisingly contentious corner of the stablecoin universe: yield.
Under the revised language, the CLARITY Act would ban passive returns on stablecoins. Stablecoin issuers couldn’t offer users interest-like payouts simply for holding their tokens. The bill allows transaction-based and activity-based rewards, meaning users could still earn something for actually using stablecoins in commerce or on-chain activity.
