Terrett added:
“One industry leader who reviewed the text today tells me the draft is a ‘departure’ from what had been previously discussed with the White House, warning the “economic equivalence” standard is vague and could be interpreted more restrictively by future regulators.”
The catch: the bill does not define how those activity-based rewards should work. Instead, it punts the details to regulators, giving the Securities and Exchange Commission, Commodity Futures Trading Commission, and Treasury one year to hash it out.
That one-year window leaves a gray zone where companies may operate without clear guardrails. For an industry that thrives on precision in code and contracts, ambiguity in law tends to land poorly.
The broader CLARITY Act has been years in the making and already cleared the House in July 2025 with bipartisan support. Its core goal is to divide oversight between the SEC and CFTC, placing most blockchain-native assets under commodities regulation.
The latest compromise revives the bill’s momentum, but it does not guarantee passage. Lawmakers still face committee markup, a full Senate vote, reconciliation with competing versions, and ultimately a presidential signature.
FAQ Does the CLARITY Act allow stablecoin interest?No, the current Senate draft bans passive yield earned from simply holding stablecoins. Are any rewards still allowed for stablecoins?Yes, activity-based rewards tied to trading, payments, or usage are permitted under certain conditions. Why are banks against stablecoin yield?Banks argue interest-bearing stablecoins could compete directly with traditional savings accounts and pull deposits away. When will final rules on stablecoin rewards be defined?Regulators are expected to establish detailed rules within one year after the law takes effect.
