Democratic Senator Angela Alsobrooks Claims Resolution on Yield Issues Blocking Bitcoin and Crypto Market Structure Bill, Believes Bill Can Pass
Democratic Senator Angela Alsobrooks (D) stated that a compromise on stablecoin yield provisions was reached with Republican Senator Thom Tillis, clearing a major obstacle for the CLARITY Act.
The compromise prohibits crypto platforms from offering yields on stablecoin holdings that are equivalent to bank deposit interest, but allows rewards based on real activities such as trading and staking.
Banking groups remain concerned about the risk of deposit outflows, while the crypto industry association quickly supported and pushed for a mark-up in the Senate Banking Committee in May.
Source: Public Information
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Angela Alsobrooks, as a Democratic member of the Senate Banking Committee, has participated in multiple rounds of negotiations between banks and the crypto industry during discussions on the GENIUS Act stablecoin framework. After the bill's signing in 2025, she continues to focus on yield loophole issues.
On the capital path, banking lobby groups successfully pushed for stronger provisions by emphasizing the risks of deposit outflows, while crypto platforms shifted to activity-based rewards to retain user engagement. Funds will flow more towards compliant trading and staking services rather than passive holding products, shifting resources from yield competition to compliance and product innovation.
Similar to Coinbase's previous withdrawal of support due to strict yield restrictions, this case aligns closely with the historical regulatory disputes between banks and non-bank payment instruments (such as money market funds). The crypto industry is currently transitioning from a regulatory gray area to federal framework control.
Essentially, this is a regulatory change: by explicitly prohibiting "deposit-equivalent yields," pricing power is partially transferred from crypto platforms to the traditional banking system. The mechanism aims to prevent shadow banking risks and maintain the credit transmission function of banks, while also creating a pathway for the overall passage of the CLARITY Act, avoiding long-term industry development stagnation due to fragmented regulation.
ABAB News · Cognitive Law
Regulatory compromise is not zero-sum; it shifts the battlefield from yields to compliance moats.
Prohibiting passive yields forces capital to shift from holding leverage to using leverage.
Banks retain deposits, crypto gains a framework, and structure is always more valuable than short-term products.