Clarity Act would let crypto firms pay stablecoin rewards — banks get yield protection too.

Draft language in the Clarity Act carves out explicit permission for crypto firms to offer rewards on stablecoins — a move that would legitimise yield-like returns that regulators have previously treated as unregistered securities offerings. At the same time, the text includes provisions designed to protect banks from being undercut, giving traditional lenders a degree of insulation against stablecoin-native competition.

The dual structure is notable: it signals lawmakers are trying to thread the needle between enabling crypto-native financial products and keeping the banking lobby onside. If the bill advances, it could open a significant new product category for stablecoin issuers — and reshape how consumers think about holding digital dollars.