Clarity Act Sparks Concerns Over Stablecoin Yield Rewards

A recently released revised draft of the Clarity Act has sparked fresh concerns among crypto firms regarding the potential curbing of stablecoin yield rewards in the US.

The bill, which aims to regulate the cryptocurrency market, proposes restricting models resembling bank deposits and introducing a clear line between passive holdings and activity-based rewards.

Industry participants who have seen the text describe the language as narrow and difficult to interpret. The draft allows for rewards tied to user activity but lacks detailed guidance on how such programs would work.

The Clarity Act is one of several efforts to push legislation forward after months of negotiation. A previous version of the bill passed in the House of Representatives last year, and another version cleared a markup stage in the Senate Agriculture Committee.