US Senate Reaches Compromise on CLARITY Act with Stablecoin Rewards Restrictions

The US Senate has reached a compromise on the CLARITY Act, a bill aimed at creating federal rules for digital asset markets. The new language addresses one of the main issues that stalled the bill in the Senate: whether crypto firms can reward users for holding stablecoins.

The Stablecoin Rewards Compromise separates passive, yield-like payments from incentives tied to actual crypto activity. Rewards that resemble bank deposit interest face tighter restrictions, while rewards linked to user activity could still be allowed depending on how regulators define permitted activities.

Coinbase, a leading cryptocurrency exchange, has backed the compromise. According to Faryar Shirzad, Chief Policy Officer at Coinbase, banks secured more restrictions on rewards, but crypto firms protected what matters: the ability for Americans to earn rewards based on real usage of crypto platforms and networks.