New Senate Crypto Draft Allows Activity-Based Stablecoin Rewards

A newly amended draft of the US Senate's Digital Asset Market Clarity Act permits crypto companies to offer rewards and incentives tied to the use of stablecoins, provided these rewards are activity-based and do not cause the stablecoin to be treated as a security or bank-like product. Senator Tim Scott, who released the draft, stated it aims to provide clear rules and protections for Americans. The proposal specifically exempts incentives connected to everyday financial activities like payments, remittances, and wallet use, as well as crypto-native activities such as providing liquidity, collateral, governance, or staking. However, the draft clarifies that a digital asset service provider cannot pay any form of interest or yield solely for holding a payment stablecoin. This provision addresses the ongoing conflict between crypto firms, who view these rewards as loyalty points, and banking groups, who argue yield-bearing stablecoins resemble unregulated deposit-taking.

(Source：Cointelegraph)