Crypto Bill Shake-Up: Senate Deal, Delays, and Daring Rewards

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Coinbase utters, with foxlike relish, that Senate negotiators have cornered a settlement on a contested clause of the crypto bill, bound to the capricious charms of stablecoin rewards.

Summary

  • Coinbase declares a rewards compromise, easing a stubborn delay for the CLARITY Act.
  • Banks clinched limits on deposit-like yield, while crypto firms kept activity-based rewards within the regulatory rails.
  • The Senate path to markup now hinges on committee support, regulatory details, and the broader political chorus.

The agreement could help the CLARITY Act move toward a Senate markup after months of delay.

Reuters reports that the quarrel pirouetted around whether crypto firms and stablecoin issuers should offer rewards to customers. Banks opposed the provision, claiming that yield-style rewards could siphon deposits away from venerable lenders.

Crypto companies argued they need room to reward users for real platform activity. Coinbase said the new language preserves that liberty while pinning a few more constraints on rewards that resemble bank interest.

Coinbase Chief Policy Officer Faryar Shirzad said, “In the end, the banks were able to get more restrictions on rewards, but we protected what matters.” He added that crypto platforms kept the ability for Americans to earn rewards based on real usage of crypto platforms and networks.

Banks win limits on deposit-like yield

The compromise was negotiated by Senators Thom Tillis and Angela Alsobrooks, according to reports. The language would ban rewards offered in a way that is economically or functionally equal to interest or yield on a bank deposit.

That wording gives banks part of what they sought. It prevents crypto firms from offering rewards that closely mirror savings account interest, while leaving room for activity-based rewards.

The deal also asks regulators to create rules on stablecoin disclosures and define which reward activities remain allowed. That step may decide how exchanges, stablecoin issuers, and payment firms design reward programs.

CLARITY Act may return to markup

The agreement could clear a path for the CLARITY Act to move forward in the Senate. The bill aims to craft clearer U.S. rules for digital assets and define how federal agencies oversee crypto markets.

Crypto.news reported that the Senate Banking Committee targets a markup during the week of May 11. The SEC has scheduled a May roundtable tied to the CLARITY Act and the landscape of digital assets.

The roundtable follows earlier SEC and CFTC work on digital asset taxonomy. Crypto.news reported that the agencies had named 16 digital assets as commodities in a framework the CLARITY Act could translate into federal law.

The rewards deal removes one barrier, but the bill still faces political tests. Some Democrats have raised concerns about crypto ties to the Trump family, while others remain focused on enforcement and consumer protection.

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2026-05-03 15:04