Stablecoin Yield Off The Table? Crypto Leaders Review CLARITY Act’s Latest Text
In a closed-door Capitol Hill meeting, crypto industry leaders reviewed the latest draft of the CLARITY Act, a long-awaited crypto market structure bill. The new text explicitly prohibits digital asset service providers—including exchanges, brokers, and affiliates—from offering any form of yield on stablecoin holdings that resembles a bank deposit. This aims to address banking industry concerns about financial risks.
The proposal does, however, allow rewards based on specific user activities—such as loyalty, promotional, or subscription programs—provided they are not economically equivalent to interest. Regulatory agencies including the SEC, CFTC, and Treasury would have one year to define acceptable rewards and establish anti-evasion rules.
Reactions within the crypto industry are mixed. Some view the language as overly restrictive and vague, potentially allowing future regulators to broadly interpret the “economic equivalence” standard. Others see it as a balanced compromise that preserves transaction-based incentives while clearly distinguishing stablecoins from interest-bearing accounts. Banking representatives are set to review the draft next.
bitcoinist03/25 10:32
