Thom Tillis is expected to release a draft agreement this week aimed at resolving the ongoing stablecoin yield dispute tied to the proposed Clarity Act. The proposal is being developed in collaboration with Angela Alsobrooks, with the goal of settling disagreements over whether cryptocurrency companies should be allowed to offer rewards on idle stablecoin balances.
According to reports, the draft language has already been reviewed by both banking institutions and crypto industry representatives. However, banks have reportedly expressed concerns and signaled resistance to certain provisions, indicating that further revisions may be necessary before public release.
Banking Sector and Crypto Firms Remain Divided on Yield Payments
The debate over stablecoin rewards has become one of the most contentious issues within the Clarity Act framework. Traditional banks argue that allowing crypto platforms to provide yield on stablecoins could trigger major deposit outflows from conventional institutions, potentially disrupting the banking system’s funding structure.
Meanwhile, crypto companies, including Coinbase, have maintained that prohibiting such rewards would limit innovation and reduce competition within the financial sector. Supporters of yield programs argue that they could encourage new financial services rather than weaken existing ones.
Legislative Path Remains Complex Despite Ongoing Negotiations
Even if lawmakers reach consensus on stablecoin yield language, the Clarity Act still faces multiple legislative steps. The bill must first pass the Senate Banking Committee before moving to the United States Senate Agriculture Committee, followed by reconciliation and a full Senate floor vote.
In addition, Senator Tillis has suggested organizing a large-scale discussion event informally described as a “crypto-palooza” to bring banking and crypto leaders together at Capitol Hill to address remaining disagreements and accelerate progress toward a unified regulatory framework.
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