New Legislation Allows Crypto Firms to Offer Stablecoin Rewards with Certain Restrictions

A newly released agreement has clarified the rules surrounding stablecoin yield, stating that crypto firms can offer rewards to customers who engage in activities such as buying and using their stablecoins, but they cannot offer interest on simply holding the coins. This approach is similar to how financial institutions offer rewards on credit card activity. The new rules aim to prevent stablecoin issuers from competing with traditional banks by offering similar services. The legislation includes provisions for regulators to define the specifics of how crypto firms can offer yield products, and it also includes anti-evasion language to prevent companies from finding loopholes. The agreement is the result of months of negotiations between US Senators and industry stakeholders, and it is seen as a significant step forward in the development of clear regulations for the crypto market.