Stablecoin Rewards Hit a Wall in Senate’s CLARITY Act Draft, Leaving Industry Guessing – Bitcoin News

CLARITY Act Compromise Limits Stablecoin Earnings, Leaves Gray Areas The revised Digital Asset Market Clarity Act, unveiled to industry participants in a closed-door Capitol Hill session on Monday, allegedly bans passive yield on stablecoin balances while permitting rewards tied to user activity such as trading or payments. That distinction sounds neat on paper, but early…

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Circle stock drops nearly 20% as CLARITY Act draft targets stablecoin yield

Circle shares dropped nearly 20% Tuesday, falling toward the $100 level after a CoinDesk report revealed new draft language in the CLARITY Act that would ban yield on stablecoin balances. The proposed rules would prohibit issuers from offering passive rewards for simply holding a stablecoin and restrict structures that resemble interest-bearing deposits. While activity-based rewards…

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