Tillis-Alsobrooks draft bans passive stablecoin yield, preserves activity rewards to unblock CLARITY Act

Senators Tillis (R-N.C.) and Alsobrooks (D-Md.) will release draft language this week that bans passive stablecoin yield — no more interest just for holding dollar-pegged tokens — while preserving activity-based rewards tied to payments and platform engagement. The compromise targets a stalemate that's frozen the CLARITY Act in the Senate Banking Committee since January, though both banking lobbies and crypto firms have already flagged fresh concerns with the draft. Three White House-mediated meetings haven't closed the gap, and Senator Moreno warns that if the bill doesn't reach the floor by May, crypto legislation goes dark until after midterms.

TLDR by @Benthic

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