Svmuu News Crypto journalist Eleanor Terrett posted on platform X, revealing details of the latest legislative text concerning stablecoin yields and rewards. The proposal aims to prohibit platforms from directly or indirectly providing yields for holding stablecoins or offering returns in a manner similar to bank deposits. This restriction would broadly apply to digital asset service providers such as exchanges, brokers, and their affiliates, with the goal of banning any activity that is economically or functionally equivalent to interest.
Furthermore, the proposal allows for rewards linked to user activities, including loyalty, promotional, or subscription programs, provided they are not considered economically or functionally equivalent to interest. The proposal requires the SEC, CFTC, and the U.S. Treasury to jointly define permissible rewards and establish anti-evasion rules within one year. Industry reactions are mixed; some view the draft as having vague standards and being overly restrictive, while others believe it meets expectations by clarifying that stablecoins cannot function as interest-bearing deposit accounts while preserving transaction incentives.