According to the reported compromise, Section 404 would bar bank deposit-like interest on stablecoins while still allowing bona fide or real platform-use rewards.
U.S. lawmakers have reportedly resolved a key dispute that had delayed the Clarity Act for months by agreeing on a compromise over stablecoin yield provisions. The reported language in Section 404 would prohibit crypto firms from offering interest that is economically equivalent to bank deposits, addressing concerns about digital asset companies providing bank-like products without being regulated as banks. At the same time, it would still allow bona fide transactions and incentives tied to genuine platform use, preserving room for common crypto reward structures linked to user activity rather than passive deposit returns. Coinbase Chief Executive Officer Brian Armstrong urged the Senate Banking Committee to review the bill soon, underscoring the industry’s interest in clearer federal rules for stablecoins and broader crypto market structure.