A new US Senate draft of the Digital Asset Market Clarity Act lets crypto firms offer activity-based rewards to stablecoin users, and it clarifies such rewards do not make stablecoins securities or bank products. The proposal was released by Tim Scott, chair of the Senate Banking Committee, who said “Families and small businesses benefit from clear rules of the road.”
The draft exempts incentives tied to payments, transfers, remittances and settlements, plus benefits from wallets, accounts, platforms and blockchain networks. It also covers loyalty programs, subscription incentives and rebates related to stablecoin use.
Crypto-native activity is included as well, with rewards allowed for providing liquidity or collateral and for governance, validation, staking and broader ecosystem participation. The draft also clarifies a digital asset service provider “may not pay any form of interest or yield (whether in cash, tokens, or other consideration) solely in connection with the holding of a payment stablecoin.”
A group of US community bankers urged Congress to amend the law, warning exchange reward programs could divert billions from local banks and weaken lending. The Crypto Council for Innovation and the Blockchain Association replied in a letter to the Senate Banking Committee, arguing payment stablecoins do not fund loans and that changes would curb innovation.
The Senate Agriculture Committee delayed its markup of the market structure bill until the final week of January, with John Boozman saying more time is needed to secure bipartisan support.
