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

A newly unveiled agreement aims to regulate the contentious aspect of stablecoin yield in the crypto market, introducing a ban on stablecoin issuers offering yield solely based on holding stablecoin reserves. This move is seen as a compromise between U.S. Senators and crypto firms, with the goal of advancing the Digital Asset Market Clarity Act. The new text allows for rewards based on bona fide activities and transactions, similar to those offered by financial institutions for credit card activity. However, it restricts loyalty programs and other similar efforts. The legislation also includes anti-evasion language and directs regulators to establish clearer guidelines for crypto firms offering yield products within a year of the bill becoming law.