Lawmakers have reportedly reached an important agreement on the path toward finalizing new cryptocurrency legislation.
As Punchbowl News I mentioned Friday (May 1), Sen. Tom Tillis, RNC, and Angela Albrooks, Maryland has reached a compromise to restrict stablecoin returns and rewards, a key development as the Senate plans to decode cryptocurrencies later this month.
The copy of the agreement obtained by the news outlet includes new language for the so-called The law of clarity Determine requirements for cryptocurrency companies to offer stablecoin rewards.
Among the requirements is a ban on bonuses offered “in a manner that is economically or functionally equivalent to the payment of interest or return on an interest-bearing bank deposit,” the report added.
In addition, the agreement also calls for regulators to establish new regulations for stablecoins, including the development of a new stablecoin disclosure system and a range of permitted bounty activities.
Coinbase Chief Policy Officer Faryar Sherzad He also stated that an agreement had been reached on Friday in a social media post.
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“In the end, banks were able to impose more restrictions on rewards, but we protected what mattered — the ability of Americans to earn rewards, based on real usage of cryptocurrency platforms and networks,” Shirzad wrote in an article. mail On X.
“We have also ensured that the United States can be at the forefront of the financial system — which is critical in this competitive geopolitical era.”
Although the CLARITY Act passed the House of Representatives in 2025, it remains in place Stumbled into the Senate Since January, there have been disagreements between traditional financial institutions and cryptocurrency companies, especially over the rules for interest payments on stablecoins.
The White House, which called on banks to reach an agreement, said banning such yield bonuses would only increase traditional lending by 0.02%, with about three-quarters of that coming One of the largest lenders The remainder is from community banks.
However, the industry group’s findings last year Independent Community Bankers of America (ICBA), showed that community banks would forgo $1.3 trillion in deposits and $850 billion in loans if stablecoin rewards were allowed.
In other stablecoin news, PYMNTS wrote last week about how the digital asset space is moving along two paths “Paths are increasingly inseparableOne is towards broader financial integration and the other is towards increased regulatory scrutiny.
“The same features that make stablecoins attractive such as speed, accessibility, and borderless portability can also make them vulnerable to misuse,” this report said.
“Unlike traditional banking systems, where intermediaries play a central role in monitoring transactions, stablecoin networks often rely on a combination of exchanges, wallet providers, and on-chain analytics companies to enforce compliance.”
