Stablecoin yield rules will determine if digital asset platforms can offer rewards on holdings

Digital asset platforms may be prohibited from offering yield or rewards on stablecoin holdings depending on the outcome of a draft agreement being released this week by Senator Thom Tillis. The draft is part of the CLARITY Act, which aims to resolve a conflict between banks and crypto firms. Banks argue that yield-bearing tools create a potential danger to savings, while cryptocurrency firms maintain that the industry cannot prosper without them. Senator Bill Hagerty confirmed the bill will go before the Senate Banking Committee this week. If the CLARITY Act does not move forward by the end of April, it may not reach a full Senate vote.