The U.S. Senate Banking Committee has unveiled the text of a landmark bill, the Clarity Act, designed to establish a comprehensive regulatory framework for cryptocurrencies. Slated for a committee vote this Thursday, the proposed legislation aims to clarify financial regulators’ jurisdiction over the burgeoning digital asset sector, potentially boosting its broader adoption.

A central, and contentious, aspect of the bill addresses how crypto exchanges and other players can offer rewards on dollar-backed stablecoins. The Clarity Act would ban rewards on idle stablecoin balances that resemble bank deposits, while permitting them for transaction-based activities. This provision has drawn criticism, with banks warning of…