The crypto industry endorses the CLARITY Act's yield compromise, advancing the bill toward Senate Banking Committee markup. The legislation requires firms to restructure staking and yield programs from passive "buy and hold" mechanics to active "buy and use" models, distinguishing rewards as consumer benefits rather than securities.
The Crypto Council for Innovation (CCI) backed the framework but flagged concerns over the provision's scope. The broad prohibition language risks catching legitimate utility programs and creating compliance friction for smaller protocols.
Staking rewards have drawn SEC scrutiny since 2021, when regulators targeted Kraken's staking product. The CLARITY Act addresses this by carving out rewards tied to active network participation or product usage. Ethereum staking, for example, would qualify under "buy and use" since validators actively secure the network.
The compromise represents rare bipartisan progress on crypto regulation. Senate Banking Committee leadership signaled readiness for markup, suggesting floor consideration within weeks.
Passage faces headwinds from banking sector opposition and regulatory ambiguity on what qualifies as "active use." If enacted, the bill redefines how exchanges, custodians, and protocols structure yield products across the U.S. market.