Blockchain Association CEO says Clarity Act bars stablecoin interest-like payments
Summer Mersinger said the bill bans bank deposit-like stablecoin rewards, subjects certain DeFi activity and digital commodity brokers to oversight, and keeps tokenized securities under SEC supervision after blockchain settlement.
Blockchain Association CEO and former CFTC Commissioner Summer Mersinger said the Clarity Act would prohibit rewards for stablecoin holders that are equivalent to interest on bank deposits, while still allowing incentives such as credit card-style points or rewards tied to user behavior. Responding to a Wall Street Journal editorial published on August 4, she argued the bill does not create a DeFi regulatory exemption, saying Section 10301 directs the SEC to write rules for protocols that appear decentralized but remain effectively controlled, while Section 10201 subjects digital commodity brokers to all Bank Secrecy Act reporting requirements and provides $3 billion for state-level enforcement. Mersinger also said Section 10505 makes clear that tokenized securities remain under SEC oversight after settlement on a blockchain, pushing back on concerns that the legislation would enable a lightly regulated shadow market in tokenized stocks and bonds.
- DeFi: Short for decentralized finance, a set of blockchain-based financial services designed to operate without traditional intermediaries.
- Bank Secrecy Act: A U.S. anti-money-laundering law that requires financial firms to keep records and report certain transactions to authorities.
- tokenized securities: Traditional securities such as stocks or bonds issued or represented in token form on a blockchain.