Senator Thom Tillis Plans to Release Draft to Resolve Stablecoin Yield Dispute in Clarity Act

Senator Tillis Eyes Draft Deal This Week to Resolve Stablecoin Yield Fight

Senator Thom Tillis hopes to release a draft agreement this week aimed at resolving a long-running dispute between banks and crypto firms over stablecoin yields. Working with Senator Angela Alsobrooks, Tillis has crafted provisions in the Clarity Act to clarify whether crypto companies can pay yields on idle stablecoin balances.

The draft has been shared with representatives from both the banking and crypto industries and has drawn opposition from banks. Tillis said he is open to further changes, and if talks go smoothly, the draft text could be made public later this week. The previously passed GENIUS Act bars stablecoin issuers from paying interest to holders but doesn't explicitly prohibit third-party platforms like exchanges from offering yields. Banks argue that allowing such yields would trigger massive deposit outflows, while crypto firms say a ban would kill innovation.