U.S. lawmakers have reached a new agreement to amend the draft cryptocurrency market structure legislation called "CLARITY Act" They revised key wording in the draft to clarify rules regarding stablecoin returns for banks and crypto companies.
CLARITY Actor the Digital Asset Market Clarity Act of 2025 is a U.S. legislative proposal aiming to establish a comprehensive regulatory framework for the crypto industry, covering digital assets, trading platforms (Exchanges), and custodial service providers (Custodians).
The CLARITY Act was approved by the U.S. House of Representatives in July 2025, with a main goal to end regulation by enforcement, which had caused market uncertainty in recent times.
The law also aims to clearly define which digital assets should be classified as "securities" under the SEC’s jurisdiction, and which should be regarded as "commodities" under the CFTC’s oversight.
The new draft prohibits crypto companies from paying interest-like "yield" to users who hold stablecoins passively, reserving this role exclusively for traditional banks. However, crypto firms can still offer "rewards" based on activity such as trading, transactions, or staking.
Following this change, Circle’s stock closed up 19.9%, while Coinbase, the primary distributor of Circle’s USDC stablecoin, rose 6.1%. BitGo and Galaxy Digital also increased by 10.3% and 3.8%, respectively.
Bitcoin rose over 1%, reaching around $79,000 after surpassing $80,000 for the first time since January during the past weekend.
Earning rewards from holding stablecoins like USDC serves as a key incentive for users, akin to interest from bank deposits. This legal adjustment is thus somewhat positive news for major crypto firms like Circle and Coinbase, but it may pressure smaller crypto platforms that relied on high-yield deposit products to attract users.
This development also reflects a broader industry trend shifting from offering high returns toward using crypto to enhance financial infrastructure.
Although most banks have not publicly commented on the draft law, Bank of America views it overall as positive for the industry.
Ebrahim H. Poonawala, a Bank of America analyst, stated Monday in a report: "For the banking sector overall, the CLARITY Act’s resolution on stablecoin returns is a positive factor because it reduces concerns about deposit outflows, lessens regulatory uncertainty, and enables banks to participate in digital asset infrastructure within a more controlled framework."
The crypto industry also welcomed the news. Coinbase CEO Brian Armstrong, who played a key role in congressional discussions and supports fair competition between crypto firms and banks, posted on X Monday morning: “Mark it up.” in response to a post about the new draft.
More broadly, this compromise increases the chances that the CLARITY Act will pass by year-end. For the crypto industry, this law is crucial as it will establish clear rules on which regulators oversee specific market sectors and define permitted and prohibited activities.
Clearer market structure standards will reduce legal uncertainty for industry players, including exchanges, stablecoin issuers, and blockchain developers, enabling easier investment, product launches, and partnerships with banks and payment networks without fearing sudden regulatory changes.
Source:CNBC,Yahoo! Finance
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