CLARITY Act Countdown: 3 Weeks to Resolve Stablecoin Rewards Language

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3-Week Countdown Begins For CLARITY Act: Coinbase Research <a href="https://trusted-reviews.ru/head">Head</a>

Key Highlights

  • David Duong said the base case is to resolve the CLARITY Act’s stablecoin rewards language within three weeks, targeting a Senate Banking Committee markup in the second half of April.
  • The latest proposed framework, revealed on March 24, would ban passive yield on stablecoin balances while permitting narrower activity-based rewards tied to payments or platform usage.
  • Crypto industry leaders are currently working on a coordinated counterproposal to explain why targeted changes are needed to protect customers and preserve sustainable rewards programs.

David Duong, Coinbase’s head of research, has explained where things stand with the CLARITY Act. He says there’s only about three weeks left to agree on the wording around stablecoin rewards, which is the main thing currently preventing the bill from moving forward in the Senate.

On March 27th, Duong posted on X that the CLARITY Act is being discussed again, with the main disagreement still centering on rewards for stablecoins.

This week, the CLARITY Act gained renewed attention in discussions about cryptocurrency policy. A major point of contention remains the issue of rewards for stablecoins. Senators Thom Tillis (Republican, North Carolina) and Angela Alsobrooks (Democrat, Maryland) recently made an announcement regarding the bill…

— David Duong🛡️ (@DavidDuong) March 27, 2026

He mentioned the agreement reached on March 20th by Senators Thom Tillis and Angela Alsobrooks, which is expected to move forward legislation previously stalled in the Senate Banking Committee.

Latest framework bans passive yield, permits activity-based rewards

The situation changed on March 24th with the release of a new proposal. According to Duong, this new version would prohibit rewards simply for holding stablecoins, but would still allow rewards earned through using them for payments or on a platform. He explained that this change aims to ease concerns from banks about people withdrawing deposits, while still allowing stablecoin innovation to continue.

Recent reports confirm that traditional banks, through groups like the American Bankers Association, are concerned that stablecoins offering interest act like unregulated bank accounts. They worry this could draw hundreds of billions of dollars away from traditional banks. Industry experts estimate that, without regulation, stablecoins could potentially shift up to $500 billion in deposits from banks by 2028.

Crypto industry mounting Coordinated Counterproposal

According to Duong, leaders in the cryptocurrency industry are collaborating on a plan to demonstrate why certain adjustments are necessary to safeguard customers and maintain valuable rewards programs. Although he didn’t mention which companies are participating, Coinbase has been a key player in the discussion about stablecoin rewards, having withdrawn its support for a bill earlier this year because initial changes limited those rewards.

In the third quarter of 2025, about 20% of Coinbase’s income came from stablecoins, mainly through its partnership with Circle regarding USDC reserves. Limiting rewards for stablecoins could significantly affect one of Coinbase’s most profitable sources of revenue.

Multiple open issues beyond stablecoin yield

In addition to rewards from stablecoins, Duong also highlighted other important issues that need quick resolution. These include creating a clear process for digital asset companies to work with the SEC, and ensuring the SEC can continue to offer exemptions from certain rules. Lawmakers are focused on both of these points, aiming to give regulators enough flexibility while also establishing clear rules for the cryptocurrency industry.

Duong believes everything can be worked out within the next three weeks, allowing the Senate Banking Committee to begin reviewing the proposal in mid-April. If everything stays on schedule and the Senate has time, the proposal could potentially be approved by May.

Timeline pressure remains intense

Time is running short for this bill. Senator Bernie Moreno has cautioned that if it isn’t debated by the full Senate in May, it’s unlikely to pass before the upcoming midterm elections make it too difficult politically. Alex Thorn from Galaxy Research agrees, stating that any further delays in the committee stage would likely end the bill’s chances of becoming law this year.

Currently, the Polymarket predicts there’s about a 68% chance the CLARITY Act will pass in 2026. This is a significant increase from 45% in late February, when discussions about stablecoin yields stalled. Recent progress – an agreement between Tillis and Alsobrooks, and planned meetings with industry stakeholders – has boosted optimism, though the full details of the proposed law haven’t been made public yet.

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2026-03-27 21:58