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Crypto Clarity Draft Curbs Stablecoin Rewards, Alarms Industry Insiders
According to CoinDesk, the latest draft crypto legislation is disappointedly narrow in its approval of stablecoin rewards.
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Citing an anonymous source who has advance knowledge on draft crypto clarity legislation, CoinDesk eloquently reports that, "The newest language on stablecoin yield in the Clarity Act has crypto insiders cringing."
What's the Scoop?
- Advance Copy: As reported by CoinDesk, crypto industry insiders were recently afforded an early look into the Senate Banking Committee's upcoming draft of the Digital Asset Market Clarity Act.
- Unsatisfactory Draft: According to CoinDesk, "the opening impression was that the language on allowable stablecoin yield was overly narrow and unclear, according to a person familiar with the current draft." This draft bill allegedly grants reward programs on a narrow basis, so long as they don't resemble interest on bank deposits in any way.
- Yield Agreement: Last Friday, two Senate Banking Committee members announced they had struck "an agreement in principle" with each other and the White House on stablecoin yield legislation, which would ban yield payments “on a passive balance.”
- Existing Prohibition: The GENIUS Act, which regulates permissible activity for payment stablecoins in the United States, explicitly prohibits issuers from offering any type of yield or interest on their instruments.
Stablecoin yield in crypto Clarity Act won’t allow rewards on balances, latest text says
The crypto industry got a first look at legislative language that won’t allow rewards on stablecoin balances, and the approach is seen as restrictive.
Jesse Hamilton