Stablecoin yield compromise clears path for CLARITY Act — Coinbase's Armstrong backs the deal.

A targeted yield compromise is helping push the CLARITY Act toward passage, drawing a line between usage-based rewards — permitted under the deal — and yield on idle balances, which would be banned. Coinbase CEO Brian Armstrong has publicly backed the arrangement, lending significant industry weight to the legislative push.

The distinction matters: it preserves the utility of stablecoins in active DeFi and payment flows while heading off the regulatory concern that idle yield turns stablecoins into unregistered securities or deposit-like instruments. For issuers, the framework offers long-awaited clarity on product design.

If the CLARITY Act advances with this compromise intact, it would mark one of the most concrete pieces of U.S. stablecoin legislation to date — setting ground rules that the broader market has been waiting on for years.