US Senate crypto bill advances as lawmakers agree to ban passive stablecoin yield while allowing activity-based rewards.
U.S. Senate talks on crypto rules have moved forward after lawmakers reached a deal on stablecoin yield.
The agreement could help clear a major block for the crypto market structure bill. It also sets new limits on passive rewards tied to stablecoins.
Senate Deal Moves Crypto Bill Forward
The reported deal centers on rewards paid on stablecoin balances.
According to Ash Crypto, U.S. senators released finalized text on stablecoin yield. He said the text bans rewards that work like bank interest.
BANKS ARE SCARED OF CRYPTO
🇺🇸 US Senators have released the finalized text on stablecoin yield.
The key points:
– Bans rewards that act like bank interest.
– Allows rewards tied to platform usage and payments.Senate Banking Committee markup is expected by the 2nd week of… pic.twitter.com/f5iYow9ywo
— Ash Crypto (@AshCrypto) May 2, 2026
Bull Theory also reported that the Senate had unblocked the crypto market structure bill.
The account said the yield issue had delayed progress for months. It also linked the deal to Senators Thom Tillis and Angela Alsobrooks.
The Senate Banking Committee markup is expected in May. Ash Crypto said it could happen by the second week of May.
Bull Theory also said the committee process is now moving again. The bill is linked to wider crypto rules in the United States.
Lawmakers have been working on how to oversee exchanges, stablecoins, and digital assets. Therefore, the yield agreement became a key step for the bill.
Passive Stablecoin Rewards Face New Limits
The reported text would block some stablecoin reward programs. Crypto platforms could not pay users only for holding stablecoins.
Such payments may be treated like interest on bank deposits.
Bull Theory said the rule targets rewards that are “economically or functionally equivalent” to bank interest.
That means passive yield could face a ban. For example, a platform offering 4% for holding stablecoins may not be allowed.
🚨 THE US SENATE JUST UNBLOCKED THE CRYPTO MARKET STRUCTURE BILL.
And crypto platforms just lost the right to pay users interest on stablecoins.
Senators Thom Tillis and Angela Alsobrooks finalized a bipartisan deal yesterday on stablecoin yield, the single issue that had… pic.twitter.com/vohEIaztyp
— Bull Theory (@BullTheoryio) May 2, 2026
However, the deal does not appear to ban all rewards. Platforms may still offer rewards tied to trading, payments, or service use.
Ash Crypto said rewards linked to platform use would still be allowed. Banks had raised concerns about stablecoin yield products.
They argued that passive rewards could pull money away from bank accounts. As a result, lawmakers focused on separating stablecoin rewards from bank-like interest.
Clarity Act Odds Rise As Markup Nears
The deal could help the Digital Asset Market Clarity Act move ahead. Bull Theory said the yield issue was the main block.
Once that issue was addressed, the bill gained a clearer path.
Prediction markets cited by Ash Crypto and Bull Theory placed the bill’s passage odds at 62%.
Bull Theory said the figure refers to a 2026 signing. The number shows growing market attention around the bill.
Bull Theory also cited Treasury Secretary Scott Bessent on a spring 2026 target. That claim was part of its report on the bill’s timeline.
Still, the next step remains the Senate Banking Committee markup. Crypto firms and banks are watching the process closely.
Exchanges want clear rules for digital asset services. Meanwhile, banks want stablecoin products kept away from deposit-style interest.
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