Home New US Bill May Ban Interest-like Rewards On Stablecoins

New US Bill May Ban Interest-like Rewards On Stablecoins

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New US Bill May Ban Interest-like Rewards On Stablecoins
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A new draft of the Digital Asset Market Clarity Act has sparked debate within the crypto industry, particularly over how stablecoin rewards will be handled.

According to the revised proposal, users will not be allowed to earn rewards simply for holding stablecoins. Instead, rewards will be linked to specific activities, ensuring that stablecoins do not function like traditional bank deposits that offer interest.

This change comes as a compromise between the crypto sector and traditional banks. Financial institutions have raised concerns that interest-like rewards on stablecoins could disrupt the banking system and reduce lending activity.

However, industry experts have pointed out that the draft lacks clarity on how activity-based rewards will work in practice. This uncertainty could affect innovation and limit the development of new financial products.

The Clarity Act is seen as a key step toward creating a comprehensive regulatory framework for crypto in the United States. If passed, it could reduce uncertainty and encourage more institutional participation, although several issues, including DeFi regulation, still need to be resolved.

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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