Senators on Tuesday unveiled a proposed compromise to the long-stalled Clarity Act, offering a path forward for stablecoin rewards. The deal would let issuers offer yield-bearing tokens under a new regulatory framework. Crypto advocates are broadly pleased. Banks, so far, aren't saying a word.
The stablecoin reward framework
The proposal carves out a specific exception for stablecoins that pass certain liquidity and reserve tests. Issuers could distribute rewards to holders, something the original bill had left ambiguous. The compromise language defines rewards as a form of interest, but exempts them from some securities laws. That's the key concession. The bill also requires monthly audits and a 1:1 reserve backing for the base stablecoin.
Senators involved say the text was drafted with input from both industry and consumer groups. The goal is to give clear rules without stifling innovation. Whether it actually lands that balance is still an open question.
Crypto community's take
The cryptocurrency community appears satisfied with the proposed deal. Several trade groups issued statements praising the clarity. One noted that the compromise removes a major barrier to launching reward products in the U.S. The general sentiment on social media is cautiously upbeat. No major objections have surfaced from the usual critics.
That's a stark contrast to previous rounds of the Clarity Act, which drew sharp opposition from DeFi advocates. This time around, the language seems to have addressed the core complaints.
Banking sector's silence
Banks have remained tight-lipped in response to the proposed compromise. No major bank or banking association has issued a statement. That silence is notable. Traditional lenders had lobbied hard against stablecoin rewards in earlier drafts, arguing they would compete unfairly with bank deposits.
It's possible banks are still reviewing the text. Or they may be waiting to see if the compromise gains momentum before picking a fight. Either way, the lack of public pushback is a win for the bill's backers — at least for now.
The proposed compromise now heads to the full Senate for debate. A vote could come as early as next month.
