New Clarity Act Text Allows Crypto Firms to Offer Stablecoin Rewards with Certain Restrictions

A newly released agreement addresses the contentious issue of stablecoin yield in the crypto market structure legislation, introducing a ban on stablecoin issuers offering yield based solely on holding stablecoin reserves. The new text, part of the proposed Digital Asset Market Clarity Act, aims to protect traditional banking institutions by preventing stablecoin issuers from providing similar financial services. However, it does permit rewards tied to real participation on crypto platforms and networks, as well as incentives based on bona fide activities or transactions. The legislation is expected to move forward, with a Senate Banking Committee hearing likely to take place soon. Crypto companies, including Coinbase, have expressed satisfaction with the new language, which they believe preserves activity-based rewards and does not object to the bill. The text also includes provisions for rulemaking, allowing regulators to define how crypto firms can offer yield products in the future.