US Senate Clears Stablecoin Rewards Hurdle in CLARITY Act Negotiations

A key hurdle has been cleared in the advancement of the CLARITY Act, as U.S. Senate negotiators have reached a compromise on stablecoin rewards.

The agreement addresses one of the main issues that delayed the bill earlier this year by blocking crypto firms from offering passive stablecoin yield that resembles bank deposit interest.

However, it allows rewards tied to real platform use, including payments, transfers, and network activity.

Crypto companies will need to adjust their reward models to comply with the new limits, which may involve shifting from 'buy and hold' programs toward 'buy and use' initiatives.