Bernstein Says Clarity Act Failure Leaves Stablecoin Reward Programs Intact

WHY IT MATTERS

Stablecoins are cryptocurrencies designed to maintain a steady value, usually pegged to the U.S. dollar. Some stablecoin issuers offer rewards or interest-like payments to people who hold their stablecoins without actively using them — similar to how a savings account pays interest on money you leave deposited. A proposed law called the Clarity Act could have changed the rules around these reward programs, but it did not pass. Now, instead of Congress writing new rules, two government agencies — the SEC (which oversees securities) and the CFTC (which oversees commodities and derivatives) — are expected to step in and create their own regulations. For newcomers to crypto, this is a good example of how the lack of clear laws in the U.S. means the rules can shift depending on which government body takes action.