The latest draft of the Clarity Act contains stablecoin yield language that is drawing unease from within the cryptocurrency industry, according to a source with knowledge of the sector’s initial review of the text. The provisions address a long-standing dispute between traditional banking interests and crypto platforms over how stablecoin rewards should be treated. The tension has made stablecoin yield one of the more contested elements of the legislation.
Senators involved in negotiating the bill crafted a compromise intended to resolve the disagreement, but the resulting language has not fully satisfied crypto insiders. The current version of the bill would permit rewards programs under a narrow set of conditions. Specifically, those programs must not resemble the interest paid on traditional bank deposits in any way.
The restriction reflects broader concerns among banking stakeholders about crypto platforms encroaching on functions traditionally associated with regulated financial institutions. By drawing a clear line between stablecoin rewards and deposit interest, the compromise attempts to address those concerns. However, the narrow framing appears to be the source of frustration on the crypto side. The implications for how platforms structure their offerings remain a point of concern among industry participants following the text’s release.
Originally reported by CoinDesk.
