Clarity Act Stablecoin Reward Debate Drags As Idle Balance Ban Stays Intact

TLDR

• Clarity Act stablecoin yield draft was not released this week.
• Current draft still bans rewards on idle stablecoin balances.
• Lawmakers are still meeting bank groups and crypto companies.
• White House CEA said stablecoin yield would have a limited banking effect.

The Clarity Act stablecoin yield language has been pushed back again. Lawmakers did not release the draft this week. Sources said the text may now come next week or later. For now, the draft still bans rewards on idle stablecoin balances.

Release pushed beyond this week

Sen. Thom Tillis said the draft will “likely not be released this week,” according to Politico. He said he wants clarity on the Banking Committee markup schedule before release. The release now depends on that timing.

A source familiar with the talks told The Block the same thing. The person said the text will not arrive this week. The draft may now appear next week or later.

The legislative team is still meeting bank trade groups and crypto companies. That delay leaves firms and lawmakers waiting for the latest terms. Tillis and Sen. Angela Alsobrooks are still working on the language.

Draft keeps ban on idle balance rewards

The same source said the current text still follows earlier language. It bans rewards on idle stablecoin holdings in accounts. However, it allows yield tied to activity, such as transactions.

The source also said major changes now look difficult. That suggests the core rule may stay in place. Bank groups and crypto firms remain far apart on that point.

The stablecoin reward issue has slowed the Clarity Act for months. Lawmakers had once aimed to move the bill by late 2025. Yet the dispute kept it stuck in committee.

Earlier law left room for exchange rewards

The GENIUS Act became law in July 2025. It requires one-to-one reserves, including cash and Treasuries. It also blocks issuers from passing reserve yield to token holders.

Still, the law did not clearly ban rewards from third-party platforms. Coinbase used that opening through its USDC rewards product. That gap became a major point in later talks.

The Clarity Act then sought to extend the yield ban to exchanges. Coinbase withdrew support for the bill after that move. Since then, the rewards debate has stayed at the center.

White House report challenges bank warnings

A White House Council of Economic Advisers report added new pressure to the talks. The report was released on April 9, 2026. It said stablecoin yield would have a limited effect on bank lending.

The report said industry estimates were too high. It put the change in bank lending at about $2.1 billion. That was far below the warnings from bank groups.

Bank groups say yield could pull deposits from traditional lenders. The ICBA said small banks could lose $1.3 trillion in deposits. Crypto firms say a blanket ban would limit competition and product options. The White House has also hosted closed-door meetings this year, yet no deal has emerged.

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