CLARITY Act Removes Stablecoin Yield Option in Latest Proposal

The CLARITY Act, a proposed crypto market structure bill, has undergone changes in its latest text. According to internal stakeholder emails shared with journalist Eleanor Terret, the updated proposal removes the option for stablecoin yield.

This move aims to address concerns from the banking industry regarding stablecoins and their potential impact on the financial system. The proposal would prohibit digital asset service providers, including exchanges and brokers, from offering interest or rewards for holding a stablecoin.

The restriction is designed to prevent workarounds and any activity that is economically or functionally equivalent to interest. This change has been met with mixed reactions from industry leaders.