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The digital asset market CLARITY Act was introduced on May 29, 2026, and passed the House in July 2025. Since then, it has been stalled due to fundamental disagreement over stablecoin yields. Banks have been lobbying against it. And, finally, the CLARITY Act is one step closer to the full Senate vote in May or July. [NEWS]

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What happened

Senators Tillis and Alsobrooks dropped the Section 404 compromise for the CLARITY Act. It strictly bans platforms like Coinbase from paying passive yield simply for holding stablecoins. But there’s a massive loophole: platforms can pay rewards if you actually use the network, like staking, providing liquidity, or voting, and they can scale those payouts based on your total balance.

Senate Banking Committee markup is scheduled for the week of May 11. JPMorgan confirmed the yield dispute is “in a good place.”

Zooming in: Section 404 bans yield “solely for holding.” But it explicitly states activity-based rewards “may be calculated by reference to a balance, duration, tenure, or any combination.” Translation: execute one qualifying transaction, swap tokens, post collateral, vote on a governance proposal, and a platform can legally pay you a reward that scales with your entire balance and how long you’ve held it. Economically, it’s nearly identical to the passive yield model it replaced. The friction shifts user behavior from passive to active, which drives transaction volume, inflates on-chain activity metrics, and makes blockchain networks structurally more robust.