What is the Clarity Act stablecoin yield provision?

It's the section of the Clarity Act that determines whether U.S. crypto exchanges can offer interest or yield on stablecoins. Banks opposed it because they feared it would redirect deposits from traditional accounts to crypto platforms. The provision is now close to a compromise deal.

Will stablecoin yield actually take deposits from banks?

There's no current evidence of significant deposit flight, according to Coinbase's CLO. But the risk is theoretically plausible—users could move money to earn higher yields. However, regulatory safeguards in the final bill may address this.

When will the Clarity Act pass?

Coinbase's leadership suggests Senate Banking Committee markup within "the next few weeks" with a floor vote after that. A hard deadline exists in May, or broader crypto legislation won't advance for years.

🔗 Crypto & Blockchain

Coinbase's Stablecoin Bet: Why a Senate Deal on Yield Could Reshape Crypto's Future

The Clarity Act's most contentious provision is nearly settled. And if Coinbase is right about a deal within weeks, it could unlock billions in domestic stablecoin revenue—and force U.S. crypto platforms to actually compete.

Fintech Dose Apr 03, 2026 5 min read 18 views

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Paul Grewal, Coinbase Chief Legal Officer, speaking on financial regulation and the Clarity Act stablecoin provisions

⚡ Key Takeaways

Coinbase CLO says the Clarity Act's contentious stablecoin yield provisions are 'very close' to resolution, with a Senate Banking Committee markup expected within weeks 𝕏
There is 'no evidence of deposit flight' to stablecoins despite banking sector warnings, a crucial fact that weakens opponents' central argument 𝕏
Prediction market confidence in the bill passing jumped from 48% to 65% after the announcement, reflecting growing momentum toward passage before May's hard deadline 𝕏

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#CLARITY Act #Coinbase #crypto regulation #senate banking committee #stablecoin yield

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Originally reported by Decrypt

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