WASHINGTON (May 13, 2026) — Today, Paul Weinstein Jr., Senior Fellow at the Progressive Policy Institute (PPI), issued the following statement ahead of the markup of the Digital Asset Market Clarity Act, also known as the CLARITY Act, by the Senate Banking Committee:
“Tomorrow, the Senate Banking Committee will begin marking up the CLARITY Act. The Committee has wanted to use the markup to clarify Section 4 of the GENIUS Act, which prohibits stablecoin issuers from paying yield like banks, but remains silent on stablecoin deposits on third-party platforms.
“But instead of closing the yield loophole, which will draw deposits away from regulated and insured banks and credit unions, the Committee is planning to consider a ‘compromise’ amendment that actually codifies the loophole into law.
“Senators Angela Alsobrooks (D-Md.) and Thom Tillis (R-N.C.) should be commended for their attempt to achieve a bipartisan compromise. But providing consumers with a less expensive payment processing tool does not require allowing stablecoins to offer customers yield-like rewards — and their proposed amendment should be strengthened to reflect that reality.”
Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us at @PPI.
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Media Contact: Ian O’Keefe – iokeefe@ppionline.org