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

The Clarity Act introduces new guidelines allowing crypto firms to offer stablecoin rewards while protecting bank yields, shaping the future of the cryptocurrency landscape.

Do you remember the excitement surrounding stablecoins and the yields they could offer? That thrill, however, is facing significant new regulations under the recently released text of the Clarity Act, which emerged on May 1, 2026. This development could shape the future of stablecoin rewards and their role in the cryptocurrency ecosystem. What is the Clarity Act Saying? The Clarity Act, a compromise forged between members of the Senate Banking Committee, provides fresh guidelines regarding how crypto firms can operate with stablecoins, particularly concerning yield offerings. This newly revealed text explicitly blocks crypto firms from offering yields that mimic bank deposits but still allows for certain rewards based on "bona fide" transactions. Can You Still Earn from Stablecoins? So, can crypto firms like Coinbase continue to offer rewards on stablecoin holdings? The short answer is yes, but with some significant caveats. The legislation prohibits stablecoin providers from offering interest akin to that of traditional bank deposits. Instead, any yield offerings must be based on genuine activities, distancing them from traditional banking practices. Why This Matters This prohibition is rooted in the belief that conventional banking institutions play a crucial role in sustaining the American economy. The lawmakers contend that allowing stablecoin issuers to offer similar yield contributions could potentially undermine these financial pillars. What About Existing Programs? For existing reward programs, the Clarity Act text contains specific guidelines. Rewards that are not directly tied to the holding of stablecoins, such as those related to dynamic participation within crypto platforms, can still be offered. For instance, incentives similar to credit card loyalty programs remain permissible. How Will These Changes Be Implemented? The legislation indicates that digital asset firms may need to rethink their reward structures. Instead of a passive "buy and hold" strat