WASHINGTON, D.C., May 3, 2026 – On May 1, 2026, United States Senators Thom Tillis and Angela Alsobrooks officially released a newly drafted compromise text for the Clarity Act. The formal release of this specific legislative text by the two senators finally resolved a highly contentious debate over the complex issue of stablecoin yields. Prior to the official release of this compromise text on the first of May, the ongoing disagreement over stablecoin yields had previously stalled the overall progression of the legislation.
The finalized language of the Clarity Act now explicitly prohibits cryptocurrency companies from paying interest. It also clearly prohibits them from paying yields on stablecoins. Specifically, according to the updated terms, the prohibition applies directly to rewards that are economically or functionally equivalent to interest. The prohibition also applies to rewards that are economically or functionally equivalent to yield. Lawmakers introduced this strict restriction into the proposed bill to directly address traditional banks' concerns regarding potential deposit flight and lending complications.
However, the newly updated legislative text does permit some specific exceptions for cryptocurrency firms. The legislation explicitly permits these crypto firms to offer certain rewards. These rewards are permitted provided they are strictly linked to what the bill specifically terms "bona fide activities." This specific language regarding bona fide activities was carefully included in the compromise text by Senators Tillis and Alsobrooks. It was included ensuring users can still earn incentives for their genuine engagement with cryptocurrency platforms. The text also ensures users can earn incentives for their genuine engagement with various cryptocurrency networks.
In a completely separate section of the text, the bill tasks regulatory bodies with several new administrative duties to oversee the sector. The legislation directly instructs those regulatory bodies to draft comprehensive new stablecoin rules. Regulators are also made officially responsible for establishing a formal disclosure framework. Furthermore, the bill officially mandates that regulators must clearly define a specific list of permissible reward activities.
Following the formal release of the updated legislative text on May 1, industry leaders expressed cautious optimism regarding the new compromise. Faryar Shirzad, acting as the chief policy officer for Coinbase, reviewed the updated text. Shirzad publicly noted his reaction to the updated provisions. He noted that despite the inclusion of the new banking restrictions, the agreement protects consumers' ability to earn usage-based rewards.
Following the compromise text's release by Senators Tillis and Alsobrooks, market analysts carefully evaluated the changing situation. Market analysts subsequently indicated an increased probability of the Clarity Act advancing forward to a formal committee markup.
Sources
- RootData (Published/Updated: May 2, 2026)
- NewsBTC (via TradingView) (Published/Updated: May 2, 2026, 01:00 GMT-7)
- IndexBox (Published/Updated: May 2, 2026, 18:20 GMT-7)
The Aquarian Take
The CLARITY Act is bad news. Like... really bad news. It's essentially the Patriot Act for the financial industry and cryptocurrencies. I see all over social media, either bots, or bitcoin maximalists cheering this on, claiming regulations will make adoption easier. They're wrong.
The CLARITY Act criminalizes the act of seeking financial privacy and anonymity. It's a clear violation of your natural born rights. There will be no due process here with laws like this. For example, money laundering laws could apply to you if you take your dollars and convert them to gold that you hide under your mattress without telling anyone. The very act of preserving your wealth privately can be used against you.
The CLARITY Act does very similar things for the crypto industry. It's going to violate your right to trade privately and your right to privacy. It's as 1984 as it gets and almost no one is out there talking about it...
Except for Aaron Day. He's been talking about it for a while now. You can read his recent X thread about it here.
