The release of a key stablecoin draft tied to the U.S. CLARITY Act has been delayed again as lawmakers seek more clarity on the legislative schedule, with the debate over yield rules emerging as the primary hurdle. Senator Thom Tillis stated the draft text, which was expected this week, is unlikely to be published until next week or later. He emphasized the need for certainty on when the Senate Banking Committee will schedule a markup before making the text public, warning that premature release could invite undue scrutiny.
The central dispute revolves around whether users should be allowed to earn rewards on stablecoin holdings. The current draft reportedly maintains earlier proposals to block rewards on idle stablecoin balances held in accounts while still permitting yield tied to transactional activities. This issue has created a sharp divide: traditional U.S. banks strongly oppose such rewards, arguing they could pull deposits away from the banking system and affect financial stability. In contrast, crypto companies like Coinbase argue that banning rewards would stifle innovation and limit stablecoin utility.
This conflict is an attempt to close a loophole left by the GENIUS Act passed last year, which banned stablecoin issuers from paying interest directly but allowed third-party platforms to offer rewards. Despite private meetings hosted by the White House since the beginning of the year, no agreement has been reached. Senator Tillis has been working with Senator Angela Alsobrooks to finalize this part of the bill.
The delay pressures the overall timeline for the CLARITY Act. Having missed an initial target window of April 13–20 for a committee markup, attention now shifts toward the Senate's May 21 recess. However, Coinbase Chief Policy Officer Faryar Shirzad expressed confidence, stating that if discussions stay on track, the Senate Banking Committee could take up the bill this month, potentially leading to a full Senate vote in May. Ripple CEO Brad Garlinghouse also noted the legislation is entering a critical phase.
