CLARITY Act markup could come next week after stablecoin deal breakthrough

A notable development has hit the crypto markets. The CLARITY Act is moving toward its next procedural test after Senate negotiators released compromise language on stablecoin rewards last week, raising expectations that the Senate Banking Committee could take up the measure as soon as the week of May 11. Alex Thorn, head of research at Galaxy Digital, said the release of text from Sens. Thom Tillis and Angela Alsobrooks was a positive signal for a markup to be scheduled soon.

He said the compromise had been expected, but that publishing the language made a near-term committee vote more plausible. The timing has become the central question for the Digital Asset Market Clarity Act, known as the CLARITY Act, after months of negotiations over whether crypto companies can offer customers rewards tied to stablecoins. As of Monday, the Senate Banking Committee had not posted a May markup of the bill on its public markup page.

Market Dynamics

However, the difference between an early-May markup and another delay could define whether Congress has enough time to send the measure to President Donald Trump before the election calendar begins to dominate the Senate. Related Reading CLARITY Act faces White House blitz as Treasury and SEC flood Senate with coordinated pressure this week A rare multi agency barrage is meant to force a Senate Banking markup after the bill sat untouched for months. Apr 10, 2026 Oluwapelumi Adejumo Stablecoin rewards were the blockage The CLARITY Act had stalled since January, no thanks to disagreements over stablecoin rewards.

Banks have argued that those rewards could function like interest on deposits, pulling money away from regulated lenders and weakening their ability to fund loans. On the other hand, crypto firms countered that a broad ban would protect banks from competition and restrict incentives for ordinary customers tied to payments, loyalty programs, or platform activity. Due to these disagreements, the Senate Banking Committee postponed debate on the bill in January, prompting a White House-led concerted effort to ensure its progress .

As a result, a new compromise legislative draft was brokered by Tillis and Alsobrooks to give banks stronger language against yield-like products. The new Tillis-Alsobrooks language also includes a broad prohibition on rewards offered in a way that is economically or functionally equivalent to interest on a bank deposit. The text would also direct regulators to develop stablecoin rules, including disclosures and a list of permitted reward activities.

Market Impact

In response, Faryar Shirzad, Coinbase’s chief policy officer, pointed out that crypto companies preserved the ability for Americans to earn rewards based on actual use of crypto platforms and networks. Shirzad said: “We protected what matters – the ability for Americans to earn rewards, based on real usage of crypto platforms and networks. We also ensured the US can be at the forefront of the financial system – which in this competitive geopolitical era is paramount.

That’s important for innovation, consumers and America's national security. ” Notably, Coinbase was one of the most important opponents of the January draft. So, its current reversal removes a visible industry obstacle, even if it does not guarantee Democratic support for the bill.

Banks to continue fight against stablecoin rewards Despite the compromise, the traditional banking lobby is expected to actively escalate its defensive maneuvering against the bill. Thorn had warned that the “banks increase their opposition efforts” to the new development. The American Bankers Association (ABA), backed by 52 state bankers' associations, launched a preemptive strike last week, submitting a joint comment letter to the Office of the Comptroller of the Currency (OCC).

Crypto markets are watching this development closely as investors weigh its potential impact on prices.