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The Clarity Act moved significantly closer to becoming law after U.S. lawmakers unveiled compromise language resolving one of the most contentious issues in the bill: whether crypto firms should be allowed to offer yield on stablecoins.
The updated proposal triggered an immediate reaction across the crypto industry and prediction markets, where traders on Polymarket sharply increased the probability of the legislation passing in 2026. Odds on the platform reportedly jumped from 46% to 55% within a single day following the release of the revised text.
The latest developments mark a major turning point for the Clarity Act, which has spent months stalled amid disputes between crypto companies, banking lobbyists, and lawmakers over how digital dollar products should be regulated.
The revised language was introduced Friday by Senators Thom Tillis and Angela Alsobrooks. The compromise attempts to draw a clear distinction between traditional banking products and crypto-native reward systems.
Under the latest version of the Clarity Act, crypto companies would not be allowed to pay users interest simply for holding stablecoins in a manner comparable to bank savings accounts. That restriction was heavily pushed by traditional banking groups, which argued that unrestricted stablecoin yields could undermine the banking system by creating unregulated alternatives to deposits.
However, the Clarity Act still permits crypto firms to offer rewards tied to what lawmakers described as “bona fide activities,” meaning users could still receive incentives connected to actual blockchain usage, staking participation, network activity, or platform engagement.
That distinction has become central to the broader political battle surrounding the Clarity Act because it attempts to preserve crypto innovation while limiting direct competition with federally regulated banks.
The compromise was welcomed by several crypto industry leaders who viewed the final wording as a partial victory for digital asset companies.
Faryar Shirzad said the agreement protects meaningful crypto participation while addressing concerns raised by lawmakers and banks.
“In the end, the banks were able to get more restrictions on rewards, but we protected what matters,” Shirzad said. “Americans can still earn rewards through real crypto usage.”
Brian Armstrong responded even more directly, posting “Mark it up” on social media in what appeared to be a public call for lawmakers to immediately advance the Clarity Act through committee review.
The strong industry response reflects how critical the Clarity Act has become for U.S. crypto companies seeking clearer regulatory guidance after years of enforcement-driven oversight from federal agencies.
Not everyone inside the crypto sector viewed the compromise positively. Mert Mumtaz argued that the revised framework effectively prevents Americans from earning low-risk yield on dollar-backed stablecoins outside the traditional banking system.
According to critics, the Clarity Act compromise demonstrates the growing influence of banking lobbyists in Washington as lawmakers attempt to strike a balance between innovation and financial stability.
The banking sector has consistently opposed stablecoin yield products, warning that they could divert customer deposits away from traditional financial institutions while operating outside standard banking regulations.
That tension has become one of the defining political battles surrounding the Clarity Act.
Industry analysts say the release of the finalized stablecoin language likely clears the path for formal Senate Banking Committee action.
Alex Thorn noted that the Clarity Act could face committee markup as early as the week of May 11, representing the fastest legislative progress the bill has seen in months.
The possibility of imminent movement has energized crypto firms that view the Clarity Act as essential for restoring regulatory certainty in the United States.
For years, crypto companies have argued that unclear rules and overlapping agency authority have driven innovation overseas. Many industry participants believe the Clarity Act could establish a more predictable framework for digital asset businesses operating within the U.S. Still, Thorn warned that the fight may intensify once the legislation officially enters markup.
He suggested banking groups are likely to escalate lobbying efforts in an attempt to tighten restrictions further before final passage.
Several senators backing the legislation have recently emphasized the urgency surrounding the Clarity Act.
Bernie Moreno previously said he expects the bill to move forward before the end of May, while Cynthia Lummis described the situation more bluntly earlier this year by saying, “It’s now or never.”
The growing pressure reflects broader concerns that the United States risks falling behind other jurisdictions already implementing crypto-specific regulations.
Europe has moved ahead with its Markets in Crypto-Assets framework, while jurisdictions such as Hong Kong, Singapore, and the United Arab Emirates continue attracting digital asset firms with clearer licensing systems.
Supporters of the Clarity Act argue the U.S. must establish competitive rules quickly if it hopes to remain a global leader in blockchain innovation.
Although stablecoin yield rules have dominated recent headlines, the Clarity Act covers a much broader range of issues involving crypto market structure, token classifications, and federal oversight responsibilities.
The legislation is widely viewed as one of the most important crypto policy efforts currently moving through Washington.
If passed, the Clarity Act could reshape how digital assets are regulated across exchanges, custody providers, decentralized finance platforms, and token issuers.
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