The US Senate is considering the CLARITY Act, potentially impacting $6 billion in crypto rewards, according to reports. The debate centers on defining stablecoin "rewards" and who can pay them. The GENIUS Act already prohibits stablecoin issuers from paying interest or yield for holding stablecoins. The CLARITY Act aims to clarify whether this ban extends to platforms, exchanges, or affiliates offering rewards. The decision could affect stablecoin distribution and on-platform balances. Banks are lobbying to close loopholes, fearing deposit disintermediation. Coinbase may reconsider its support if the bill restricts rewards beyond disclosure requirements, signaling industry concerns as regulations become more specific.

The US Senate is considering the CLARITY Act, potentially impacting $6 billion in crypto rewards, according to reports. The debate centers on defining stablecoin "rewards" and who can pay them. The GENIUS Act already prohibits stablecoin issuers from paying interest or yield for holding stablecoins. The CLARITY Act aims to clarify whether this ban extends to platforms, exchanges, or affiliates offering rewards. The decision could affect stablecoin distribution and on-platform balances. Banks are lobbying to close loopholes, fearing deposit disintermediation. Coinbase may reconsider its support if the bill restricts rewards beyond disclosure requirements, signaling industry concerns as regulations become more specific.