Svmuureports that on May 12, the U.S. Senate Banking Committee released the latest 309-page draft of the CLARITY Act. However, Section 404 of the draft still stipulates a prohibition on rewards for "merely holding" stablecoins.
Specifically, no regulated entity may directly or indirectly pay any form of interest or yield (whether in cash, tokens, or other consideration) to a restricted recipient solely because that recipient holds its stablecoin, or pay rewards on stablecoin balances in a manner that is economically or functionally equivalent to paying interest or yield on interest-bearing bank deposits.
However, the latest draft also allows for stablecoin rewards and incentives tied to real activities or transactions, such as rewards linked to participating in actual transactions, payments, platform activities, or providing liquidity.