US Senate Releases Bipartisan Compromise on Stablecoin Interest Payments

A compromise language has been released by a bipartisan group of US senators, outlining provisions to bar interest payments on passive stablecoin holdings. The agreement is part of the CLARITY Act, a bill addressing crypto market structure.

The central provision would block stablecoin issuers from offering returns solely because an investor holds the asset. Under the agreement, issuers would be prohibited from paying customers interest in any form, including cash or tokens.

An exception is made for incentives similar to credit-card points or cashback. Legitimate rewards programs tied to actual activity or real transactions, rather than interest payments, would fall outside the restriction.