Senate draft would permit activity-based stablecoin rewards under limits

An amended US Senate CLARITY Act draft, titled the Digital Asset Market Clarity Act, would allow crypto firms to offer activity-based rewards to stablecoin users, the draft and accompanying materials released by Senate Banking Chair Tim Scott and shared with Cointelegraph show. The proposal states that certain rewards and incentives tied to the use of stablecoins would be permitted but notes that offering rewards does not cause a stablecoin to be treated as a security or a bank-like product.

"Families and small businesses benefit from clear rules of the road," Scott said in a statement shared with Cointelegraph. "This bill reflects months of serious work, ideas, and concerns that have been raised across the Committee, and it gives everyday Americans the protections and certainty they deserve." The draft exempts incentives connected to everyday financial activity, including rewards linked to payments, transfers, remittances and settlements, and benefits tied to the use of wallets, accounts, platforms or blockchain networks.

It also covers loyalty and promotional programs, subscription-based incentives and rebates. The text further permits rewards tied to providing liquidity or collateral and to participation in governance, validation, staking or broader ecosystem activity.

Key Topics

Crypto, Clarity Act, Tim Scott, Stablecoin Rewards, Senate Banking Committee, Community Banks