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

Odaily Planet Daily News: 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 rewards for "merely holding" stablecoins.

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, or pay stablecoin balance rewards in a manner that is economically or functionally equivalent to paying interest or yield on interest-bearing bank deposits.

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