‍#Gate广场四月发帖挑战

The Controversy or Resolution of the CLARITY Act—Tillis Draft to Be Released This Week

If we talk about major crypto events in April, whether the "CLARITY Act" will pass can be considered one. Currently, the bill is hindered by the biggest controversy—the issue of stablecoin yields. In response, U.S. Senator Thom Tillis plans to unveil a revised stablecoin yield draft this week. What are the specifics? Can it resolve the interests game between the entire crypto industry and traditional banking sector? Let’s take a look:

💎 Core controversy: Can stablecoins pay yields to holders?

The question is simple: Can stablecoin issuers or exchanges pay yields to users holding stablecoins?

But legally, this is extremely complex.

On March 20 this year, Tillis and Democratic Senator Angela Alsobrooks reached a principled agreement on stablecoin yields, breaking a months-long deadlock. The agreement is clear:

Prohibit: Passive income from stablecoin balances—i.e., earning interest solely by holding dollar-pegged tokens

Allow: Activity-based rewards related to payments, transfers, and platform interactions

This compromise was developed into a regulatory framework jointly by the SEC, CFTC, and the Treasury Department.

💪 Filling the gaps in the GENIUS Act with the CLARITY Act

The GENIUS Act was signed into law by Trump in July 2025. It explicitly bans stablecoin issuers from paying interest or yields to holders in any form.

But this ban only targets the issuers themselves.

When exchanges receive stablecoins from users for market making or lending, should these yields be shared with users? This loophole was not explicitly addressed in the GENIUS Act. The provisions drafted by Tillis and Alsobrooks aim to close this gap.

👊 The power struggle: Banks vs. Crypto Industry

Banks’ concerns are straightforward: If stablecoins can offer yields similar to bank deposits but are not subject to FDIC insurance, capital adequacy, reserve requirements, and other regulations, depositors might shift large amounts of funds. Banks bear regulatory costs, while stablecoin issuers face lighter regulation—this asymmetry puts banks at a disadvantage.

The crypto industry’s stance: Without the ability to provide yields, stablecoin innovation will be stifled. Blockchain systems operate differently from traditional finance and require tailored regulatory rules.

Tillis’s statement: Willing to amend

Tillis has explicitly expressed willingness to make further modifications. This indicates he knows his current version is not the final answer and that balancing both sides’ interests is necessary. This open attitude suggests the draft is still in negotiation.

📈 Prediction for the fate of the Tillis draft

The Tillis draft is highly likely to be incorporated into this year’s comprehensive financial regulation bill. There are three reasons: both parties have political motivation to push stablecoin legislation; lobbying efforts from companies like Tether and Circle are increasing; May is a critical juncture—missing it might mean waiting until after the midterm elections.

If this draft passes Congress, it will be the most comprehensive legislative framework for the stablecoin industry in the U.S. to date. It will impact all entities operating within the dollar stablecoin ecosystem—from issuers to exchanges, from market makers to ordinary users.

Summary
The release of the Tillis draft this week will be a key moment in U.S. crypto regulation legislation. It’s not just a technical legal clause but a reflection of the power shift between traditional finance and emerging crypto sectors.

Regardless of the final outcome, this game is pushing the U.S. to move from "enforcement regulation" to "clear rules"—which may be beneficial for the long-term development of the entire industry.