The United States Senate has released the final version of the Clarity Act, a crucial piece of legislation aimed at regulating stablecoin interest earnings. This pivotal legislation is expected to reshape the cryptocurrency market structure and address concerns about potential bank deposit outflows.
The Clarity Act establishes clear guidelines for stablecoin reward structures, distinguishing between interest-like earnings and activity-based rewards. The bill specifically prohibits interest payments that could compete directly with traditional bank deposits while allowing activity-based rewards tied to specific blockchain functions.