BULLISH 📈 : Bipartisan CLARITY Act deal lifts crypto stocks, raises passage odds to 63%
Senate leaders struck a bipartisan compromise on stablecoin yield in the CLARITY Act. Crypto equities jumped on May 4 as the Senate scheduled a markup for later this month.
Title: Senate stablecoin yield deal lifts crypto stocks; CLARITY Act markup set for May
Crypto firms rallied. Circle +20%, BitGo +10%, Coinbase +7%, Galaxy Digital +4 on May 4. Robinhood also gained. Source: Coinspeaker: CLARITY Act framework and stablecoin policy and Coinspeaker: Robinhood buyback and stock performance.
The House passed the CLARITY Act in 2025. The Senate stalled in January after the Banking Committee canceled markup. Coinbase CEO Brian Armstrong withdrew support amid an industry split. Source: Coinspeaker.
Senators Thom Tillis and Angela Alsobrooks led talks. A May 1 draft resolved the yield dispute via structure, not bans. Passive yield is prohibited. Activity-linked rewards remain allowed. Source: Coinspeaker.
Circle and Coinbase endorsed the draft quickly. For USDC, incentives stay in place. Federal Reserve oversight is added for non-bank issuers. Source: Coinspeaker.
The framework clarifies asset categories. It splits SEC and CFTC jurisdiction. It keeps state rules. It requires 1-to-1 reserves in high-quality liquid assets. It excludes algorithmic instruments from “stablecoin.” Source: Coinspeaker.
A Senate markup is set for later this month. Odds of a floor vote rose with the compromise. Source: Coinspeaker.
Why it matters for investors:
- Stablecoin rewards clarified. No passive interest. Platform activity rewards allowed. Source: Coinspeaker.
- Fed oversight for non-bank issuers. Stronger compliance path for stablecoins. Source: Coinspeaker.
- 1-to-1 HQLA reserves. Algorithmic coins excluded. Lower model risk. Source: Coinspeaker.
- Equity repricing favors direct stablecoin exposure. Circle led gains. Coinbase and Galaxy lagged. Source: Coinspeaker.