Story perspectives

Senate Approves CLARITY Act: Bans Stablecoin Interest, Preserves Rewards

5/3/2026

Summary

Senate Approves

U.S. Senate, with Senators Thom Tillis and Angela Alsobrooks, approved a CLARITY Act compromise on May 1, 2026.
It bans firms from paying interest on stablecoins resembling bank deposits, yet allows rewards.
Coinbase chief legal officer Faryar Shirzad said the deal preserves rewards.
Industry leaders urged a swift markup before the Senate Banking Committee meets week of May 11.
Senators Bernie Moreno and Cynthia Lummis expect passage by end of May, odds at 55%.

Summary

Congress Sets Standards

The agreement directs Treasury and the Commodity Futures Trading Commission to define the “economically or functionally equivalent” stablecoin reward standard and to create a new disclosure regime listing permissible activities.
The language emerged after months of talks with bipartisan senators, the White House, Treasury officials, banks and crypto firms.
President Donald Trump, who pushed crypto reform, had his family profit from a personal token, which Punchbowl News first disclosed.

History

Historical Context

After the 2008 crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed on July 21 2010. The 848-page law created the Financial Stability Oversight Council, gave the Federal Reserve and the SEC new supervisory powers, and imposed stricter capital rules on banks. Those structures now shape newer proposals to curb crypto-stablecoin risks.

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Senate Approves

U.S. Senate, with Senators Thom Tillis and Angela Alsobrooks, approved a CLARITY Act compromise on May 1, 2026.
It bans firms from paying interest on stablecoins resembling bank deposits, yet allows rewards.
Coinbase chief legal officer Faryar Shirzad said the deal preserves rewards.
Industry leaders urged a swift markup before the Senate Banking Committee meets week of May 11.
Senators Bernie Moreno and Cynthia Lummis expect passage by end of May, odds at 55%.

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