The US CLARITY Act advanced toward enactment following the publication of final stablecoin yield provisions by US Senator Thom Tillis and US Senator Angela Alsobrooks. Coinbase chief legal officer Faryar Shirzad declared the moment critical for finalizing the legislation, noting that the text resolves the contentious dispute between banking and crypto sectors regarding yield competitiveness. The finalized document, titled SEC 404 Prohibiting interest and yield on payment stablecoins, explicitly forbids crypto firms from paying any form of interest or yield to customers solely for holding stablecoins, mirroring restrictions on bank deposits.

However, the text carves out a crucial exception allowing firms to offer rewards tied to bona fide activities, preserving the ability for Americans to earn returns based on real usage of crypto platforms and networks. Data compiled by Woofun AI shows that while banks secured stricter restrictions on passive rewards, the core mechanism for active user incentives remains intact.

Industry reaction to the compromise has been mixed, with some executives expressing frustration over the elimination of risk-free yield on dollar holdings without bank intermediation. Helius Labs CEO Mert Mumtaz characterized the ruling as clarity on the inability to generate risk-free returns outside the traditional banking system. Despite this friction, the resolution of the yield debate removes a primary obstacle that had stalled the bill's progress through Congress earlier in the year. With this specific hurdle cleared, the focus shifts to the broader legislative package, prompting calls from industry leaders to immediately schedule a markup session. Coinbase CEO Brian Armstrong urged stakeholders to mark up the bill, signaling readiness for the next procedural phase.

Market sentiment reflected in prediction markets has adjusted upward in response to the legislative breakthrough. Traders on the Polymarket crypto prediction market now assign a 55% probability to the CLARITY Act being signed into law in 2026, representing a 9 percentage point increase following the Friday announcement. Galaxy Digital head of firmwide research Alex Thorn assessed that the release of the text suggests the Senate Banking Committee will schedule a markup imminently, potentially as early as the week of May 11. Woofun AI notes that Thorn simultaneously warned of intensified opposition efforts from banking institutions as the bill moves closer to a vote. The timeline for final passage remains tight, with US Senator Bernie Moreno anticipating the act will be completed by the end of May.

Political urgency is mounting as key figures emphasize the narrow window for legislative success. US Senator Cynthia Lummis stated on April 11 that the current moment represents a now or never scenario for the industry. The convergence of finalized text, rising market confidence, and immediate scheduling expectations indicates a pivotal shift in the regulatory landscape. Woofun AI analysis suggests that while banking opposition may intensify, the removal of the yield deadlock significantly alters the trajectory for the CLARITY Act, positioning it for potential enactment within the current congressional session.