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Stablecoin yield in crypto Clarity Act won't allow rewards on balances, latest text says
Revised Clarity Act bans yield on stablecoin holdings, allowing only activity-based rewards to address banking concerns and regulatory clarity, senators said.
- Senators Angela Alsobrooks and Thom Tillis introduced new language for the Digital Asset Market Clarity Act on Friday, aiming to clear a roadblock for a Senate Banking Committee hearing on Capitol Hill in Washington.
- Industry lobbying battles over stablecoin yield versus bank deposits stalled progress on the legislation. The GENIUS Act passed last year as the first major step in governing the crypto sector.
- The proposal bans yield payments for simply holding Stablecoins and restricts bank-like features. Democrats also demand a ban preventing senior officials, including President Donald Trump, from profiting personally from the crypto industry.
- Compromise language allows rewards on crypto activities but not balances, though industry insiders reviewing the draft on Capitol Hill expressed concerns the rules remain overly narrow and unclear regarding DeFi oversight.
- This regulatory framework aims to eliminate uncertainty for hesitant investors, potentially opening floodgates for institutional investors and developers to build atop the technology once the Senate finalizes the legislation.
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26 Articles
Clarity Act and Stablecoins: Traditional Banks Block Interest on Crypto Balances - Economic Scenarios
The cryptocurrency industry hoped for a zero-cost financial revolution, but the traditional banking system has come up short. The new draft of the Digital Asset Market Clarity Act (simply known as the Clarity Act), currently under review in the United States Senate, is clear: no passive returns for those who simply hold stablecoins. This is a political compromise that may raise eyebrows among industry insiders, but from a macroeconomic and syste…
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Total News Sources26
Leaning Left1Leaning Right0Center3Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
L 25%
C 75%
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