The Senate Banking Committee is set to review the CLARITY Act, focusing on stablecoin regulations, with a markup scheduled for the week of May 11. A coalition of major banking groups is lobbying against provisions that would allow stablecoin issuers to offer interest-like payments, fearing they could resemble savings accounts. Senators Thom Tillis and Angela Alsobrooks have brokered a bipartisan compromise prohibiting passive yields on payment stablecoins, while allowing activity-based rewards. The legislative push aims to establish a unified federal framework for stablecoin issuers, replacing the current patchwork of state-level regulations. The CLARITY Act has already passed the House with bipartisan support and is expected to reach the Senate floor by mid-May. The outcome could significantly impact how stablecoin issuers, such as Circle and Tether, compete in the market, particularly concerning yield-bearing products.