CLARITY Act Draft Paves Way for Stablecoin Incentives, Excludes Passive Yield
The latest iteration of the CLARITY Act, spearheaded by Senate Banking Chair Tim Scott, explicitly authorizes crypto firms to offer activity-based rewards tied to stablecoin usage. Transactions, remittances, and platform participation now qualify for incentives—a calculated MOVE to stimulate adoption while maintaining regulatory boundaries.
Governance participation, staking, and liquidity provision rewards receive explicit approval under the draft legislation. The bill draws a firm line at passive yield, prohibiting interest payments for mere stablecoin holdings to avoid classification as securities or deposit products.
Loyalty programs and promotional rebates emerge as compliant incentive mechanisms. This legislative clarity arrives as stablecoins increasingly function as payment rails, with the Act serving as a framework for growth without triggering banking or securities regulations.
