Revised Clarity Act Sparks Concerns Over Stablecoin Yield Rewards

The revised draft of the Crypto Clarity Act has caused unease among crypto companies, as it proposes restrictions on stablecoin yield rewards.

According to industry leaders who have seen the text, the language is narrow and difficult to interpret in parts. Despite allowing rewards tied to user activity, the draft does not clearly outline how such programs work.

The proposed changes aim to distinguish between passive holdings and activity-based rewards. However, this distinction may leave firms uncertain about compliance rules as scrutiny around crypto regulation increases.

The rewritten draft is one of many efforts to push the legislation forward after months of negotiations. Earlier drafts have progressed through Congress, but timelines remain uncertain due to ongoing debates over DeFi oversight and political provisions.