
Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) have finalized a compromise on stablecoin yield, clearing the way for the Clarity Act to move forward in the Senate Banking Committee. The deal bans rewards offered "in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit." Companies could still offer rewards tied to stablecoins, but only if those rewards pass a regulatory test proving they aren't functioning like bank deposit interest. The compromise also directs regulators to develop a new stablecoin disclosure regime and define a list of permissible reward activities. Stablecoin yield has been the central holdup for the Clarity Act for months. Banks argued that stablecoins offering 5-6% yields were directly competing with traditional savings accounts outside the banking regulatory framework. Tillis says he will push for the bill to enter markup after the May recess. Separately, Tillis expressed support for Senator Cynthia Lummis' framework to protect non-custodial software developers from prosecution under 1960s-era money transmitting statutes, drawing a legal line between developers who write open-source code and entities that actually control customer funds.

















