CLARITY Act Stablecoin Markup May 14 After Stablecoin Interest Compromise

The U.S. Senate Banking Committee scheduled a **CLARITY Act** markup for **May 14 (14:30 UTC)** after a bipartisan breakthrough on **stablecoin interest**. The core dispute was whether stablecoin holders should receive interest: crypto exchanges favored activity-based rewards (tied to trading volume or platform use), while banks warned that deposit-balance-based interest could trigger customer outflows from traditional institutions and destabilize the banking system. Under the latest compromise in the **CLARITY Act**, activity-based rewards are preserved, but interest calculated solely on a holder’s stablecoin **deposit balance** is explicitly prohibited. Banking stakeholders indicated they may still seek amendments, but the bill has enough support to move to the next stage. After the Banking Committee markup, the **CLARITY Act** is expected to be merged with a complementary stablecoin bill from the Senate Agriculture Committee. The combined package then moves toward a full Senate floor vote. Separately, lawmakers are pushing an ethics provision to bar senior public officials from personally profiting from crypto policy, though it’s unclear whether it will be included at markup. For traders, this is a near-term catalyst for **stablecoin regulation clarity** (reserves, disclosures, and consumer-protection expectations), which could improve confidence around dollar-pegged assets. However, amendment risk remains as the text heads into committee merging and full-vote stages.