CLARITY Act Draft Tightens Rules on Stablecoin Rewards

Highlights:

• The new draft bars interest-based stablecoin rewards, which users receive for holding tokens.
• Stablecoin rewards may survive through loyalty, promotion, or subscription programs.
• The SEC, CFTC, and Treasury must establish reward regulations within one year.

The CLARITY Act’s latest draft sharpens the fight over stablecoin incentives. The new proposal would block platforms from paying yield for holding dollar-pegged tokens. Moreover, lawmakers drew a firmer line between crypto products and bank deposits.

New Draft Draws a Firmer Line Around Stablecoin Rewards

Crypto In America journalist Eleanor Terret, citing shareholder details, stated that the text would put a halt to exchanges, brokers, and related firms from offering yield directly or indirectly. It would also prohibit any structure that appears economically equivalent to an interest. Thus, companies will not repackage the same return via affiliates or side programs.

This restriction extends beyond obvious interest payments. It also targets designs that copy savings accounts without the use of banking terms, striking one of the biggest user incentives in the industry. Stablecoin yield products are expected to have no space to operate under the new standard.

🚨NEW: New details are emerging about the latest legislative text outlining a compromise on stablecoin yield and rewards, along with early reactions from crypto industry leaders who reviewed it today.

According to an internal stakeholder email shared with me, the proposal would… https://t.co/S3BAqr5ma0

— Eleanor Terrett (@EleanorTerrett) March 24, 2026

The proposal received a quick split reaction in the industry. One crypto leader described the strategy as being even more limited than prior White House discussions, claiming that the economic equivalence test is ambiguous. Furthermore, the rule would be interpreted more aggressively by future regulators.

Activity-Based Rewards Still Remain on The Table

The draft still allows rewards linked to activity rather than balances. Platforms might retain loyalty offers, promotion campaigns, and subscription-style perks. These incentives, however, should not be tied to growth in balance or interest-like return. This distinction now forms the center of the compromise.

The proposal also mandates the SEC, CFTC, and Treasury to come up with joint guidance. These agencies will establish permitted rewards within a year. They will also develop anti-evasion regulations to prevent disguised interest schemes. As a result, the market may face a second major policy fight during implementation.

Furthermore, some industry voices still see balance in the compromise. They argue the draft preserves transaction-based incentives that support usage and adoption. At the same time, it makes clear that stablecoins cannot act like deposit accounts. Supporters, therefore, describe the language as close to expectations.

Capitol Hill Meetings Now Expected to Shape the Next Phase of the Bill

The latest text arrived ahead of key meetings with crypto and banking representatives. Crypto groups reviewed the language first on Capitol Hill. Bank representatives are expected to examine the text next. This dispute over rewards has slowed progress on the bill for months. Bank advocates have argued that yield-bearing stablecoins could drain funds from traditional lenders. Crypto firms, meanwhile, have pushed for room to keep user incentives alive, turning stablecoin yield into one of the bill’s hardest issues.

The updated language follows last week’s negotiations involving Senators Thom Tillis and Angela Alsobrooks. Their talks with the White House produced a tentative agreement in principle. Moreover, there are other disputes still surrounding the wider bill, including DeFi oversight and ethics limits for senior officials.

🚨 BREAKING: U.S. SENATORS REACH BIPARTISAN DEAL WITH WHITE HOUSE ON STABLECOIN YIELD DISPUTE

The CLARITY Act just cleared its biggest hurdle.
Senator Thom Tillis (R-NC) and Senator Angela Alsobrooks (D-MD) confirmed Friday they have an agreement in principle with the White… pic.twitter.com/3BQmIbAVh0

— BSCN (@BSCNews) March 20, 2026