US Senators Thom Tillis and Angela Alsobrooks oppose banks’ opposition to stablecoin revenue settlement. They note that the deal is final to advance the long-stalled cryptocurrency market structure bill and pass the Clarity Act.
US Senators point to final agreement on stablecoin yield settlement in Clarity Act
On May 5, Senators Thom Tillis and Angela Alsobrooks passed A Joint statement regarding the settlement of stablecoin returns amid opposition from the banking industry. The statement comes after an agreement between the two parties regarding Section 404 in the Clarity Act.
The senators point out that the deal is final, claiming that both sides have worked to address the banking industry’s concerns about deposit flight. Senate negotiators reached Settlement on stablecoins leads to rules At CLARITY ACT last week.
“We have worked in good faith with all parties throughout this process to encourage compromise and avoid allowing the perfect to become the enemy of the good,” said Senator Tillis. “The result is a dramatically improved, consensus-based product.”
He added that the deal prohibits stablecoin returns or rewards that are “economically or functionally equivalent” to interest on bank deposits. This addresses the banking industry’s fundamental concern about deposit flight risks in the CLARITY Act.
The compromise allows cryptocurrency companies to offer activity- or transaction-based rewards. Cryptocurrency companies can reward participation, such as trading, staking, or other activities on the platform.
Additionally, Senator Tillis has indicated his support for passing the CLARITY Act, which provides the cryptocurrency regulations needed to foster innovation. He added that some in the banking industry may still oppose this, but “we respectfully agree to disagree.”
Senators and the cryptocurrency industry react
Banking groups, including the American Bankers Association and others, criticized the settlement over stablecoin yields. They argue that the language of the legislative text still falls short of protecting bank deposits.
Senator Tim Scott, Chairman of the US Senate Banking Committee, on Monday He said “We are making real progress on regulating the digital asset market and restoring confidence in our economy.” He also noted the push for the CLARITY Act to be coded in May.
In response to the banks’ opposition, Senator Cynthia Lummis confirmed that the stablecoin yield adjustment “has been completed.” She highlighted months of hard work to reach a bipartisan compromise on stablecoin returns, adding that passage of the Clarity Act is imminent.
This final, bipartisan text is the culmination of months of hard work to reach a yield compromise we can all live with. We are closer than ever to putting the law of clarity at the finish line. https://t.co/8vF7tzpxpy
– Senator Cynthia Lummis (@SenLummis) May 4, 2026
Coinbase CLO Paul Grewal reacted to the statement today, congratulating transaction banking for bringing Republicans and Democrats together. Coinbase CEO Brian Armstrong urged crypto invoice to be tokenized immediately.
With the stablecoin return problem largely solved, the stablecoin return problem has been solved The Senate Banking Committee could hold a mark As early as mid or late May, which could lead to a full Senate vote in June or July. If passed, the cryptocurrency market structure bill will head to President Trump, who has confirmed the passage of the Clarity Act immediately.
Polymarket’s odds of approving the CLARITY Act signed into law in 2026 rose to 70% for the first time in one month. The department’s share price rose 20% as senators indicated that the settlement on stablecoin returns is final.
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