US Government Proposes Stablecoin Yield Ban in CLARITY Act Draft

The US government is making significant strides in regulating the cryptocurrency market with the proposed CLARITY Act.

The draft legislation aims to address concerns about stablecoin yields and rewards by prohibiting platforms from offering incentives similar to interest-bearing bank deposits.

Industry stakeholders have expressed mixed reactions, with some viewing the proposal as overly restrictive while others see it as a balanced approach that preserves transaction-based incentives.

The draft also requests top regulators to jointly define what rewards are permissible, including activity-based rewards such as loyalty and promotional programs.

The White House is working closely with lawmakers and industry groups to finalize the legislation, with an April markup targeted.