Story perspectives

Senate Deal Bans Idle Stablecoin Yields, Boosts Coinbase

5/9/2026

Summary

Tillis, Alsobrooks Ban Stablecoins

Senate Banking Committee set a CLARITY Act markup for May 14, 2026.
Senator Thom Tillis and Senator Angela Alsobrooks reached a May 2, 2026 deal banning idle stablecoin yields.
Coinbase’s shares rose 9.5% after the deal, reflecting its $19 billion USDC exposure.
The bill, backed by Senator Cynthia Lummis and Senator Thom Tillis, would define SEC-CFTC roles, replace lawsuits with a rulebook, and could unlock $3-$5 billion in crypto investment within a year.

Summary

Industry Backs Markup

Coinbase chief policy officer Faryar Shirzad called the markup a big step forward and said clear market-structure rules are needed to protect consumers, support innovation, and keep development in the United States.
Kristin Smith, president of the Solana Policy Institute, said the bill lets the U.S. lead in blockchain.
Blockchain Association said the Act will finally define the federal regulator for digital assets.
Industry sees the markup ending regulatory uncertainty.

Summary

Senate Approves Clarity

The Senate must approve the Clarity Act bill by the end of 2026 for it to reach President Donald Trump.
The House passed its version of the Clarity Act in July last year.
Democrats argue the bill is weak on anti-money-laundering rules and should bar officials’ crypto profits.
Banking groups warn the stablecoin-rewards compromise could shift deposits from insured banks, prompting a last-minute push before the May 14 hearing.

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Tillis, Alsobrooks Ban Stablecoins

Senate Banking Committee set a CLARITY Act markup for May 14, 2026.
Senator Thom Tillis and Senator Angela Alsobrooks reached a May 2, 2026 deal banning idle stablecoin yields.
Coinbase’s shares rose 9.5% after the deal, reflecting its $19 billion USDC exposure.
The bill, backed by Senator Cynthia Lummis and Senator Thom Tillis, would define SEC-CFTC roles, replace lawsuits with a rulebook, and could unlock $3-$5 billion in crypto investment within a year.

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