A new legislative draft under the CLARITY Act could prevent crypto platforms from operating in ways similar to traditional banks, while still allowing certain types of user incentives to continue.
Representatives from the crypto industry and the banking sector met again on Capitol Hill this week to review updated language aimed at reaching a compromise after months of negotiations. A central issue remains whether platforms should be allowed to offer rewards tied to stablecoin holdings.
New Rules Target Interest Like Stablecoin Rewards
Crypto journalist Eleanor Terrett shared details from the discussions on X, noting that the latest proposal would clearly prohibit platforms from offering stablecoin rewards that resemble interest payments, whether directly or indirectly.
According to sources, the restriction would apply across the entire industry, covering all digital asset service providers and their affiliated entities. The aim is to eliminate any workaround that could allow platforms to introduce products that function like interest bearing accounts tied to stablecoins.
At the same time, the proposal allows for activity based rewards, provided they are not structured as interest. These would include incentives tied to user engagement such as loyalty programs, promotional offers, and subscription benefits.
The draft also assigns responsibility to regulators including the U.S. Securities and Exchange Commission, Commodity Futures Trading Commission, and the U.S. Department of the Treasury to jointly define what qualifies as acceptable rewards and to establish enforcement guidelines.
Mixed Reactions From Industry Participants
Feedback from industry stakeholders has been divided. Some participants noted that the latest draft differs significantly from earlier discussions involving the White House. They also raised concerns about the use of the economic equivalence standard, arguing that its vague wording could allow regulators to interpret the rules more strictly.
There are also worries that certain provisions may restrict how rewards can be linked to user balances or transaction activity, making it more difficult for crypto platforms to design competitive incentive programs. Overall, these critics view the proposal as more limited and restrictive than expected.
However, other industry figures believe the draft represents a balanced outcome. They argue that it preserves the ability to offer transaction based incentives while preventing stablecoins from functioning like traditional interest earning deposit accounts.
One source cited by Terrett suggested that the proposal may be the most practical compromise available, especially when compared to earlier versions such as the Tillis Alsobrooks draft, which was considered more restrictive. Bank representatives are expected to review the updated text in the coming days.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
