Clarity Act Clears Stablecoin Rewards Path
New rules allow crypto firms to offer stablecoin rewards tied to 'bona fide activities' while prohibiting yield that resembles bank deposits.
The update
The Clarity Act’s final text clarifies that crypto firms can offer stablecoin rewards, but only if they’re tied to “bona fide activities” rather than resembling bank deposits. The legislation prohibits crypto firms from offering yield that’s the “functional or economic equivalent” to bank offerings, while allowing rewards based on actual platform participation. This compromise between crypto and banking industries was facilitated by Senators Thom Tillis and Angela Alsobrooks after months of negotiations.
Why it matters
This compromise resolves one of the main roadblocks to the Clarity Act’s passage, creating a clear compliance pathway for DeFi yield products while addressing banking industry concerns about competition. The bill now appears more likely to advance through the Senate Banking Committee, with traders on Polymarket predicting a 55% chance of it becoming law in 2026. Coinbase’s leadership expressed satisfaction with the language, noting it preserves activity-based rewards tied to real participation on crypto platforms.
What to watch
How will major stablecoin issuers adapt their product roadmaps to comply with the new rules? The banking industry may increase its opposition efforts following this compromise. The specific criteria defining “bona fide” transactions versus prohibited bank-like deposits will likely face legal challenges and regulatory interpretation. Industry observers will also monitor whether this compromise leads to broader agreement on other unresolved points in the legislation.