On March 23, 2026, a new draft of the Digital Asset Market Clarity Act (CLARITY Act) emerged, imposing fresh restrictions on stablecoin yields and rewards. Journalist Eleanor Terrett reported that industry leaders reviewed the draft the same day. The proposal aims to limit interest-like features on stablecoins while defining allowable reward structures.
Direct and Indirect Yields Banned; Equivalent Mechanisms Targeted
The draft prohibits platforms from offering yield on stablecoins, both directly and indirectly. Any structure resembling a bank deposit or functioning as interest is banned. The restriction broadly covers digital asset service providers, including exchanges and brokers. Critically, the language bars any mechanism deemed “economically or functionally equivalent” to interest, closing loopholes for alternative structures. Platforms face tighter controls when designing financial products tied to stablecoins.
Activity-Based Rewards Allowed: Loyalty Programs and Promotions Survive
Not all rewards are outlawed. The proposal permits activity-based incentives linked to user behavior, such as loyalty programs, promotions, and subscription-based rewards. However, such rewards must not depend on user balances or transaction amounts, nor resemble interest. This carve-out preserves some incentive space but draws a clear line—any reward tied to the time value of money is off-limits.
Three Agencies to Define Rules, Anti-Evasion Measures Within One Year
The draft directs the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and the Treasury Department to jointly define permissible rewards and establish anti-evasion rules within one year. This sets up a coordinated regulatory framework for stablecoin incentives. Market participants should watch for rulemaking developments over the next 12 months.
Industry Feedback: From “Departure” to “Expected,” a Wide Spectrum
Reactions are mixed. One industry leader described the draft as a departure from earlier White House discussions, noting the “economic equivalence” standard could invite stricter interpretation by future regulators. Another called the overall approach more restrictive. Yet a separate participant said the draft aligns with expectations, preserving transaction-based incentives while preventing stablecoins from functioning like interest-bearing accounts. The proposal expands on earlier work by Senators Thom Tillis and Angela Alsobrooks, and bank representatives are now set to review it. Further legislative negotiations ahead.