Stablecoin yield would be prohibited under a newly released agreement addressing that contentious part of the crypto market structure legislation in an approach that's broadly similar to what's been discussed since the start of the year. The new section of proposed Digital Asset Market Clarity Act text released Friday revealed that the compromise hashed out by U.S. Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) would ban stablecoin issuers from offering yield based on just holding stablecoin reserves. It contends that "depository institutions provide financial services that are integral to the strength of the American economy," and stablecoin issuers offering similar services "may inhibit" these institutions. Coming to an agreement means there's likely nothing in the way of a Senate Banking Committee hearing (known as a markup) that could finally advance the legislation another key step in its progress through the Senate, though there are a number of other negotiation points that haven't been publicly resolved. "Mark it up," Coinbase CEO Brian Armstrong wrote in a posting on social media site X. His company had been at the center of the talks and potentially had the most to lose from restrictions on stablecoin rewards. Coinbase's chief legal officer, Paul Grewal, said in a separate post that this language "preserves activity-based rewards tied to real participation on crypto platforms and networks, which is what the bank lobby said they wanted," adding that "we’re focused on getting a bill done and are satisifed that this language should not be the basis of any objection." In its legalese, the new text reads, "No covered party shall, directly or indirectly, pay any form of interest on yield (whether in cash, tokens, or other consideration) to a restricted recipient — (A) solely in connection with the holding of such restricted recipient's payment stablecoins; or (B) on a payment stablecoin balance in a manner that is economically or functionally eq