The compromise matters especially for crypto exchange Coinbase, with Coinbase Chief Policy Officer Faryar Shirzad noting that it is time for the bill to move forward.
The Rewards Fight Now Behind The IndustryInterestingly, the most important part of Shirzad’s statement is not just that the final rewards text is public, but that Coinbase is treating the issue as settled enough for the bill to move forward. Much of the debate on the CLARITY Act has been based on how crypto firms can offer yield on stablecoin deposits; however, there seems to be a compromise now.
Basically, rewards tied to what the bill calls “bona fide activities,” which are actual use of crypto platforms or networks, remain permitted. This is why Shirzad described the outcome as a case where banks secured restrictions on rewards, but the industry protected what mattered most.
Where Does The CLARITY Act Go From Here?The CLARITY Act is a market structure bill designed to answer the biggest legal question hanging over the US crypto industry: when is a digital asset a security, when is it a commodity, and which regulator has authority over the trading platforms?
Featured image from Unsplash, chart from TradingView
