Revised CLARITY Act Allows Stablecoin Rewards with Conditions

A bipartisan draft of the revised U.S. CLARITY Act has been released by the Senate Banking Committee, proposing to allow stablecoin rewards while maintaining protections for traditional bank deposit-interest businesses.

The revised bill language draws a formal distinction between stablecoin reward programs operated by crypto companies and interest paid on traditional bank deposits.

Crypto firms would gain clearer regulatory footing to design and market stablecoin-based incentive programs, which currently exist in a gray area that has deterred some firms from offering yield-like features on stablecoin holdings.