New Regulations Allow Crypto Firms to Offer Stablecoin Rewards with Certain Conditions

A newly proposed agreement regarding the crypto market structure legislation has been released, which would ban stablecoin issuers from offering yield solely based on holding stablecoin reserves. This approach is similar to previous discussions and aims to differentiate stablecoin services from those provided by depository institutions. The new text allows for rewards based on genuine activities or transactions, similar to those offered by financial firms for credit card activity. However, this restriction does apply to loyalty programs or similar efforts. The legislation is the result of a compromise between U.S. Senators and is expected to move forward in the Senate, with some experts suggesting that crypto firms may need to restructure their yield offerings to comply with the new regulations.