US Senate Targets April Committee Markup for CLARITY Act as Stablecoin Yield Provisions Tighten

The US Senate is moving toward a committee markup of the Digital Asset Market CLARITY Act in the second half of April, as lawmakers signal talks are nearing the finish line. Senator Cynthia Lummis has indicated the final legislative text could be released within days, pointing to negotiations entering their closing phase. The version headed for markup departs significantly from earlier drafts, reflecting fresh compromises struck over the past month. The most consequential change centers on stablecoin yield. Under the latest deal, passive yield on stablecoin balances would be effectively prohibited, aligning with priorities pushed by the banking industry. In return, the bill is expected to permit limited, activity-based rewards tied to payments or platform usage, narrowing what earlier proposals left open to broader yield distribution. Crypto companies had argued that yield is a key user incentive, but that position appears to have been traded away to secure bipartisan momentum. At the same time, lawmakers have strengthened language aimed at protecting decentralized finance (DeFi). Updated provisions are expected to clarify that developers and noncustodial protocols are not treated as financial intermediaries, addressing industry fears that prior drafts could have imposed bank-style compliance obligations on software builders. The bill's core framework remains intact. It preserves a formal division of oversight between the Commodity Futures Trading Commission and the Securities and Exchange Commission, assigning the CFTC authority over digital commodities while maintaining SEC jurisdiction over investment contract assets. The political calendar is now driving urgency. Senator Bernie Moreno has warned that failure to pass the measure by May could push broader digital-asset legislation past the 2026 midterm cycle, forcing lawmakers to weigh speed against the compromises needed to get the CLARITY Act over the line.