Revised U.S. CLARITY Act Could Allow Stablecoin Rewards

Revised text of the U.S. CLARITY Act would permit crypto firms to offer stablecoin rewards to users while maintaining protections for traditional bank deposit-interest businesses, according to a bipartisan draft released by the Senate Banking Committee.

The revised bill language, published as part of a broader bipartisan market structure package by Chairman Tim Scott, draws a formal distinction between stablecoin reward programs operated by crypto companies and interest paid on traditional bank deposits.

The revision is proposed legislation, not enacted law. It would need to pass both chambers of Congress and receive a presidential signature before taking effect.

How the revised text separates stablecoin rewards from bank deposit interest

The core change in the revised CLARITY Act text is a provision that would allow cryptocurrency firms to structure stablecoin reward programs without those programs being classified as deposit-taking activities under existing banking law.

At the same time, the bill includes language designed to preserve the regulatory framework around bank deposit-interest products. This dual structure suggests lawmakers are attempting to open a path for crypto product innovation while keeping the boundaries of traditional banking intact.

The distinction matters because stablecoin rewards and bank deposit interest, while superficially similar from a consumer perspective, operate under fundamentally different structures. Bank deposits carry FDIC insurance and fall under prudential supervision. Stablecoin rewards do not carry those protections, and the revised CLARITY Act text does not appear to extend deposit insurance to crypto reward products.

A White House analysis on stablecoin yield prohibitions has explored the tension between these two product categories, examining how restricting or permitting stablecoin yields could influence broader credit markets.

What this could mean for crypto firms offering stablecoin products

If the revised CLARITY Act advances through Congress, crypto companies would gain clearer regulatory footing to design and market stablecoin-based incentive programs. Currently, the legal status of such programs exists in a gray area that has deterred some firms from offering yield-like features on stablecoin holdings.

The proposed language could reshape competition in the stablecoin market. Firms that issue or custody stablecoins would potentially be able to attract users with reward structures that function as a form of yield, provided those structures comply with the bill’s requirements and do not cross into deposit-taking territory.

This regulatory clarity would be particularly relevant for stablecoin issuers competing for market share, as institutional interest in crypto assets continues to grow. Recent movements like the Ethereum Foundation’s $47 million ETH sale illustrate the scale at which major entities are already operating within the digital asset ecosystem.

However, the bill’s language uses conditional framing. The text says crypto firms “would” be allowed to offer rewards, indicating this remains a proposal subject to negotiation and amendment before any final vote.

Why the bank-protection clause is central to the bill’s design

The inclusion of protections for bank deposit-interest businesses is not a secondary detail in the revised CLARITY Act. It reflects a deliberate compromise: permitting crypto innovation on one side while shielding an established banking revenue model on the other.

Banks earn significant revenue from the spread between deposit interest paid to customers and the returns generated by lending those deposits. If crypto firms could offer functionally equivalent products without the same regulatory overhead, banks could face competitive pressure on their core deposit-gathering function.

The revised bill text appears designed to prevent that outcome by maintaining a clear legal boundary. Crypto reward programs would operate under their own regulatory classification, separate from the deposit-interest framework that governs banks.

This approach mirrors a broader pattern in recent U.S. crypto legislation, where lawmakers have sought to accommodate digital asset innovation without dismantling existing financial regulatory structures. Market participants are watching these developments closely, as signals like shifts in BTC funding rates and surges in BTC open interest often reflect how traders position around major regulatory catalysts.

Legislative status and next steps

The revised CLARITY Act text is part of a larger market structure draft released by the Senate Banking Committee. It has not been voted on by either chamber of Congress.

The bill would need to clear committee markup, floor votes in both the Senate and House, and presidential approval before becoming law. Each stage introduces opportunities for further amendment or removal of specific provisions.

For crypto firms, the revised text signals that at least some lawmakers support creating a legal framework for stablecoin rewards. For banks, the explicit protections suggest that the legislative intent is to preserve their deposit-interest model rather than expose it to unregulated competition.

Readers tracking U.S. crypto regulation should watch for committee scheduling and any markup sessions that could alter the stablecoin reward provisions before a floor vote.

FAQ about the revised CLARITY Act and stablecoin rewards

Is the revised CLARITY Act already law?

No. The revised text is a proposed bill released by the Senate Banking Committee. It must pass both chambers of Congress and be signed by the president before it takes effect.

Are stablecoin rewards the same as bank deposit interest?

No. Bank deposit interest is paid on FDIC-insured accounts under prudential banking regulation. Stablecoin rewards are incentive programs offered by crypto firms and do not carry deposit insurance or the same regulatory protections.

Which types of crypto firms could benefit if the revision advances?

Stablecoin issuers, crypto exchanges, and digital asset custodians that hold or distribute stablecoins would be the most directly affected. The provision could give these firms a clearer legal basis to offer reward programs as a user acquisition and retention tool.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.

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Sophia Panel

02 May 2026, 01:29:48 GMT +0000

Sophia Panel is a cryptocurrency journalist with 10+ years of experience. She reports on token listings, stablecoins, exchanges, and market trends, in plain, clear language. At Coincu.com, she helps readers spot what is moving and why, turning complex trading data into simple insights. Her work often features lessons from top fintech firms and rising crypto startups.

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