CLARITY Act Could Stop Platforms Acting Like Banks – But Rewards Stay

Crypto and bank representatives convened again on Capitol Hill this week to review the latest legislative text outlining a compromise between the two groups after months of discussions. The meeting continues previous talks on whether the former should be allowed to offer its customers rewards from their stablecoin holdings.

Key takeaways

Quick scan — what you need to know:

• Crypto and bank representatives convened again on Capitol Hill this week to review the latest legislative text outlining a compromise between the two groups after months of discussions.
• The meeting continues previous talks on whether the former should be allowed to offer its customers rewards from their stablecoin holdings.
• Proposed Rules Will Allow For Activity Rewards Crypto journalist Eleanor Terrett shared details from the session via social media, stating that the latest proposal would explicitly bar crypto…
• Per sources cited by Terrett, the restriction would result in a broad industry-wide ban that applies to all digital asset service providers and their affiliates.

Background

What led here, in plain terms:

• This measure would close any potential loopholes in the proposed legislation and prevent these platforms from introducing anything ‘economically or functionally’ similar to…
• On the other hand, the new rules will allow activity-based rewards linked to user engagement on the condition that they are not considered as interest.
• This will cover activities like loyalty, promotional, and subscription programmes.
• Additionally, the new guidelines require regulators like the U.S.

Why it matters

Why readers and decision-makers should care:

• This is because a previous version, the Tillis-Alsobrooks proposal, would have imposed more restrictive guidelines.
• Meanwhile, she has also revealed that bank representatives will be reviewing the text this week.
• The post CLARITY Act Could Stop Platforms Acting Like Banks – But Rewards Stay appeared first on CryptoPotato.