Senate Compromise Bans Passive Stablecoin Yield

Circle's stock took its worst single-day hit after draft language leaked banning passive yield on stablecoin balances. This ban is the central component of a bipartisan compromise that surfaced on March 20 to resolve a Senate stalemate over the CLARITY Act. The House passed the original regulation bill in July 2025, but the Senate stalled the legislation over whether crypto platforms offering passive returns on stablecoin balances were operating as unregulated savings accounts. The stablecoin market currently sits at $316 billion.