CLARITY Bill's Latest Draft Still Prohibits Earning Rewards Solely for Holding Stablecoins

Odaily Odaily reports that on May 12, the U.S. Senate Banking Committee released the latest 309-page draft of the CLARITY Act. However, Section 404 of the draft still stipulates a prohibition on offering rewards "solely for holding" a stablecoin.

Specifically, no regulated entity may directly or indirectly pay any form of interest or yield (whether in cash, tokens, or other consideration) to a restricted recipient solely because that restricted recipient holds its stablecoin, nor pay rewards on stablecoin balances in a manner that is economically or functionally equivalent to paying interest on deposit accounts.

However, the latest draft also stipulates that stablecoin rewards and incentives are permitted if they are tied to real activities or transactions, such as rewards linked to participating in actual transactions, payments, platform activities, providing liquidity, etc.