Stablecoin yield talks stall as Senate delay cuts path to 2026 passage

The odds that Congress will allow cryptocurrency exchanges to pay yield on stablecoin balances are fading as legislative delay narrows the window for Senate action. Sen. Thom Tillis will delay releasing the compromise text on stablecoin yield under the Clarity Act, citing uncertainty over when the Senate Banking Committee will mark up the broader bill. The holdup centers on whether platforms like Coinbase can continue offering returns on idle stablecoin holdings—a practice banks argue drains deposits, but crypto firms say benefits consumers and drives innovation. The current draft of the Clarity Act bans rewards on inactive balances while permitting yield linked to transactional activity. That framework, shaped in part by the prior GENIUS Act’s restriction on direct interest payments by issuers, appears increasingly fixed, with a source familiar with negotiations saying major changes are unlikely this late. The bill passed the House 294-134 in July 2025 but has stalled in the Senate for nearly a year. Galaxy Research now estimates that failure to advance the bill through committee by April 2026 would reduce its chances of becoming law that year to near zero. With a 60-vote threshold needed for a full Senate vote, bipartisan support is essential—and dwindling. Even industry optimists are recalibrating: Ripple CEO Brad Garlinghouse recently pushed his own forecast for passage from April to the end of May 2026.