A proposed compromise to the Clarity Act—a major U.S. crypto bill—could reshape how crypto platforms offer “rewards” tied to stablecoins, but traditional banking groups have not publicly endorsed the latest language.

According to the new proposal from Senators Thom Tillis and Angela Alsobrooks, rewards that are “economically or functionally equivalent” to interest on a bank deposit would be prohibited. In practice, that would block direct yield on stablecoin deposits, while leaving potential room for other reward categories tied to network participation or platform activity.

The draft language would also require regulators and the Treasury Secretary to define which reward categories are permissible after the bill’s passage. The text suggests that governance, validation, and staking-linked rewards could be allowed—even if calculated with reference to a user’s account balance.

Crypto industry leaders welcomed the compromise, with Coinbase signaling support after previously raising concerns about strict stablecoin-yield limits. However, the banking lobby has remained notably quiet, and prior statements from bank trade groups indicate they will likely push to close “yield-like” loopholes that could replicate interest through cosmetic structuring.

Why it matters

- Stablecoin rewards are a key flashpoint between crypto platforms and banks, which view them as competing with low-yield deposit products.

- The final scope of permitted rewards could determine whether mainstream exchanges can offer incentives around stablecoins without triggering bank-like regulation.

- The timeline is tightening: lawmakers have signaled the Clarity Act could face a vote soon, with political calendars creating pressure to act.

What to watch

Whether banking groups publicly oppose the compromise and how regulators ultimately define “permissible reward categories” will be crucial for exchanges, DeFi platforms, and stablecoin issuers operating in the U.S.