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

A newly released agreement on the Digital Asset Market Clarity Act has clarified the rules for stablecoin yield offerings, prohibiting crypto firms from offering yield based solely on holding stablecoin reserves. However, the legislation does allow for rewards tied to bona fide activities or transactions, similar to those offered by financial firms for credit card activity. The new text, released by U.S. Senators Thom Tillis and Angela Alsobrooks, aims to strike a balance between regulating crypto firms and allowing them to innovate. The legislation includes provisions for rulemaking, which will be led by the Treasury Department and the Commodity Futures Trading Commission, to provide further guidance on how crypto firms can offer yield products. The agreement has been welcomed by industry leaders, including Coinbase CEO Brian Armstrong, who expressed satisfaction with the language and its potential to drive consumer utility, competition, and innovation in the digital asset ecosystem.