US Senate Reaches Compromise on Clarity Act Stablecoin Rewards

The US Senate has made progress in its efforts to pass the Clarity Act, a comprehensive crypto bill. A compromise has been reached regarding stablecoin rewards, which have been a point of contention between the banking and crypto industries.

Under the proposed language, crypto companies would be prohibited from offering rewards on stablecoin deposits that are 'economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit.' However, rewards tied to participation in governance, validation, and staking could still be allowed.

The compromise has been welcomed by key crypto stakeholders, including Coinbase, which had previously expressed concerns about stablecoin yield restrictions. The company's chief policy officer, Faryar Shirzad, stated that the new language would 'protect what matters' for Americans who use crypto platforms and networks.