Stablecoin Yield Ban Remains in Clarity Act Draft, Despite Delayed Release

Stablecoin holders who maintain idle balances will still be barred from earning yield under the current draft of the Clarity Act, which remains delayed and unlikely to be released this week. The language prohibiting rewards on unused stablecoin balances has stalled the bill for months, despite lawmakers’ initial aim to move the legislation by late 2025. This rule would distinguish stablecoin accounts from traditional bank accounts, where interest on idle balances is common. The White House Council of Economic Advisers estimates the impact of stablecoin yield on bank lending would be limited to $2.1 billion, far below the $1.3 trillion in deposit losses projected by bank groups. Coinbase, which previously offered stablecoin rewards through its USDC product, withdrew support for the bill after the draft sought to extend the yield ban to exchanges. The prohibition on idle balance rewards remains intact despite continued negotiations between lawmakers, banks, and crypto firms.