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Clarity Act text lets crypto firms offer stablecoin rewards while shielding bank yield

Clarity Act text lets crypto firms offer stablecoin rewards while shielding bank yield

Stablecoin yield would be prohibited under the newly released agreement between U.S. Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) addressing that contentious part of the crypto market structure legislation in a compromise that’s broadly similar to what’s been discussed since the start of the year.

The text released Friday would ban stablecoin issuers from offering yield based on just holding stablecoin reserves, saying that “depository institutions provide financial services that are integral to the strength of the American economy,” and stablecoin issuers offering similar services “may inhibit” these institutions.

“No covered party shall, directly or indirectly, pay any form of interest on yield (whether in cash, tokens,…

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