CLARITY Act gains momentum as stablecoin yield compromise takes shape — Armstrong backs the deal.

A yield compromise is emerging as the key to unlocking progress on the CLARITY Act: usage-based rewards on stablecoins would be permitted, while yield on idle balances would be explicitly banned. The distinction gives product builders a workable path while addressing regulators' core concern that passive yield turns stablecoins into unregistered securities.

Coinbase CEO Brian Armstrong has publicly backed the deal, lending significant industry weight to the compromise. His support signals that at least part of the exchange sector sees the trade-off as acceptable — a meaningful shift from earlier blanket opposition to yield restrictions.

If the framework holds, it could be the clearest legislative signal yet on how stablecoins fit into U.S. financial regulation, with downstream implications for DeFi protocols and payment rails that depend on dollar-pegged assets.