Coinbase, one of the world's and the US's largest crypto exchanges, reported on Friday that an agreement had been reached on a key provision of a landmark cryptocurrency law, which could pave the way for the bill's advancement in the US Senate, Reuters reports, according to UNN.
Details
The bill stalled earlier this year because banks opposed a provision allowing stablecoin issuers and crypto firms to offer yield-bearing products and other rewards paid on stablecoins, which could lure away bank deposits and make it harder for them to fund lending.
Crypto giants such as Coinbase argued they should be able to offer rewards to attract customers and that a ban on doing so would be anti-competitive.
"Ultimately, banks were able to get more restrictions on rewards, but we protected what matters – the ability for Americans to earn rewards based on real usage of crypto platforms and networks," Coinbase Chief Policy Officer Faryar Shirzad said in a post on X.
Punchbowl News, which reported on the text of the compromise deal brokered by Senators Thom Tillis and Angela Alsobrooks, said the language includes a broad ban on rewards offered "in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit."
The text also directs regulators to propose a new series of rules regarding stablecoins, including the development of a new disclosure regime for stablecoins and a list of permitted reward-related activities, Punchbowl News added.
Cryptocurrency companies operate in a regulatory "gray area," which executives say hinders their business development. The proposed Clarity Act aims to create clear rules that should facilitate the adoption of cryptocurrencies.
Addendum
US President Donald Trump, who actively promoted cryptocurrency during the campaign and whose family has profited from their own token, has prioritized crypto industry reform during his second presidential term.