Coinbase (NASDAQ:COIN) is backing a Senate compromise on stablecoin rewards that could revive the CLARITY Act after months of stalemate.
The Stablecoin Rewards Compromise
The new language bans rewards on stablecoins if they are “economically or functionally equivalent” to bank deposits while preserving incentives tied to actual crypto platform activity.
The Treasury Department and CFTC would issue a rulemaking to determine that equivalency standard.
The rulemaking would address specifics of what crypto companies’ rewards and staking programs need to include to pass the threshold.
This provision addresses one of the main issues that stalled the bill in the Senate: whether crypto firms can reward users for holding stablecoins.
Banks warned that stablecoin rewards could pull deposits away from regulated lenders if users can earn yield-like rewards on dollar tokens through crypto platforms.
Why Banks And Crypto Firms Were Fighting
Banks …
