Clarity Act Allows Crypto Firms to Offer Stablecoin Rewards with Restrictions

The Clarity Act, unveiled on May 1, 2026, outlines new rules governing stablecoin reward programs offered by crypto firms. Specifically, the legislation prevents these firms from offering yields on stablecoin holdings that are comparable to traditional bank deposit interest. This legislation reflects months of discussions amongst key stakeholders, including the White House and members of the Senate Banking Committee.

Under the Clarity Act, stablecoin issuers are explicitly prohibited from compensating holders with interest or yield that mimics bank services. The Act states that "no covered party shall, directly or indirectly, pay any form of interest on yield... solely in connection with the holding of such restricted recipient's payment stablecoins; or... in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit." This is intended to safeguard the integrity of depository institutions, which the Act recognizes as vital to the U.S. economy.

However, the Act does permit incentives stemming from activities that are considered genuine and distinct from conventional yield structures. For instance, rewards based on actual transactions or behaviors, akin to those seen in credit card use, can still be offered without infringing on the new regulations.

The compromise authored by Senators Tillis and Alsobrooks adds clarity to a contentious aspect of the crypto market's regulatory landscape. Previous discussions focused on how best to allow crypto rewards without undermining banking institutions. Digital Chamber CEO Cody Carbone applauded the progress, stating, "We are encouraged to see this process moving forward and will continue advocating for the power of rewards to drive consumer utility, competition, and innovation across the digital asset ecosystem."

Looking ahead, the implementation of these guidelines could significantly impact how stablecoin issuers design their reward programs. As firms adapt to these regulations, industry participants will be watching for how these restrictions influence market competition and consumer options in the digital asset space.