The CLARITY Act's Yield Bany prevents stablecoin rewards for holders
SW
Sloane Wentworth
stablecoin US legislation · Apr 17, 2026
Source: DojiDoji Data Terminal
Digital asset platforms may be prohibited from offering passive yield or rewards on stablecoin holdings. This outcome depends on the final text of the Digital Asset Market Clarity Act of 2025, known as the CLARITY Act, which seeks to regulate $220 billion in offshore stablecoins and enable the tokenization of bonds, real estate, and trade finance.
Traditional banks and the American Bankers Association argued that returns of 3-5 percent on stablecoins would trigger deposit flight from low-yield bank accounts, weakening the funding base for lending. A review from the White House Council of Economic Advisers found no evidence that stablecoin rewards cause deposit flight or threaten bank deposits and lending, concluding that a prohibition on these yields would offer little to no benefit to stability.
Pure passive yield is now banned under a new compromise, though activity-based rewards tied to platform usage or payments are permitted. Coinbase Chief Policy Officer Faryar Shirzad stated that Coinbase has conceded the point on passive yield.
The bill passed the House in July 2025 with a 294-134 vote and the Senate Agriculture Committee in January 2026. To become law, the versions from the Senate Banking and Agriculture Committees must be reconciled, and the combined Senate text must be reconciled with the House version.
Senator Thom Tillis and Treasury Secretary Bessent are working to resolve the final issues. If the bill does not move forward by the end of April, it may not reach a full Senate vote in May 2026. Failure to move forward by April would likely push comprehensive reform into the next Congress, delaying passage until 2027 or beyond. Ron Hammond, Head of Policy at Wintermute, puts the odds of the bill passing in 2026 at 30%.
