- The updated CLARITY Act revises stablecoin yield rules, allowing activity-based rewards while banning passive yield.
- Lawmakers modified tokenized equity and developer provisions after industry concerns over restrictive crypto regulations.
- The new draft also adds investor safeguards, anti-illicit finance measures, and a housing-focused Build Now Act section.
The Senate Banking Committee released a new 309-page draft of the CLARITY Act on Tuesday, advancing negotiations ahead of Thursday’s markup hearing. Lawmakers now have until the close of business Wednesday to submit amendments to the updated crypto market structure bill. The revised draft includes changes tied to stablecoin yields, tokenized equities, and protections for software developers.
Stablecoin Yield Language Gets Revision
Senate Banking Committee Chairman Tim Scott, Senator Cynthia Lummis, and Senator Thom Tillis introduced the updated legislative text on May 12. The proposal follows months of negotiations involving regulators, financial institutions, law enforcement agencies, and crypto firms.
Notably, the revised version includes the stablecoin yield compromise negotiated by Senators Thom Tillis and Angela Alsobrooks. The agreement bans passive yield payments while allowing activity-based customer incentives tied to platform usage.
The compromise became a major issue during earlier negotiations. Coinbase CEO Brian Armstrong had previously criticized the original markup draft over stablecoin provisions.
Meanwhile, Senator Tillis said the updated language aims to provide regulatory certainty after lengthy talks between banking groups and crypto industry representatives.
Tokenization Section
Another major revision involves Section 505, widely referred to as the tokenization section. Armstrong previously warned the earlier wording could create a “de facto ban on tokenized equities.”
However, the latest draft reportedly adjusts that language following discussions with major exchanges and industry participants. The updated wording now appears to have broader support from crypto trading platforms.
The bill also revises Section 1960 language related to software developers. Lawmakers reportedly reached a compromise designed to prevent developers from automatically being classified as money transmitters.
At the same time, the proposal preserves enforcement tools for authorities pursuing illicit financial activity.
Housing Measure Appears Inside Crypto Bill
Pages 300 through 309 of the draft include the “Build Now Act,” a housing-focused measure aimed at encouraging local housing development programs.
The addition surprised some observers because the provision sits inside the broader crypto market structure legislation.
Meanwhile, some ethics-related concerns may remain unresolved. Earlier versions contained limited language addressing conflicts of interest, despite reported pressure from some committee Democrats for stricter provisions.
Senator Tim Scott said the legislation delivers safeguards, investor protections, and anti-illicit finance measures while supporting digital asset innovation in the United States.
