US Crypto Bill Advances with Stablecoin Yield Compromise
The CLARITY Act, a landmark US crypto regulation proposal, has gained momentum after lawmakers finalized contentious stablecoin yield provisions. Senators Tillis and Alsobrooks brokered a compromise prohibiting crypto firms from offering bank-like interest on stablecoin holdings—a win for traditional banks that viewed such yields as competitive threats.
The bill explicitly bans payments "functionally equivalent" to deposit interest but permits transaction-based rewards. This carveout preserves avenues for decentralized finance (DeFi) incentives while addressing systemic concerns. Market participants now await further details on permissible "bona fide activities" that could qualify for exemptions.
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