A newly updated draft of the Digital Asset Market Clarity Act, often called the Senate CLARITY Act, introduces clearer rules around stablecoin reward programs in the United States. The proposal would allow crypto firms to offer activity-based rewards linked to how stablecoins are used, while drawing a firm line against interest paid simply for holding tokens.
Under the revised language rewards tied to payments, transfers, remittances, and settlements are explicitly permitted. Incentives connected to the use of wallets, accounts, platforms, or blockchain networks are also allowed, along with loyalty programs, promotional rewards, subscriptions, and rebates. Importantly, the draft states that offering these incentives does not make a stablecoin a security or a bank-like deposit product.
The bill also recognizes crypto-native activity. Rewards linked to staking, validation, governance participation, liquidity provision, or collateral use would fall within permitted activity.
The draft is clear that providers may not pay interest or yield solely for holding a payment stablecoin, regardless of whether that return is paid in cash, tokens, or other benefits.
The update comes amid pushback from community banks, which argue stablecoin rewards could divert deposits. In contrast, crypto industry groups say such incentives resemble fintech-style payment rewards, not lending products. The revised draft aims to reduce this uncertainty by clearly defining acceptable stablecoin use cases.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.