US lawmakers are taking a closer look at how stablecoin rewards should be regulated and how certain digital tokens should be classified under federal law.
A new draft from the Senate Banking Committee aims to clarify rules around stablecoin incentives and update disclosure requirements for tokens tied to exchange-traded products.
These changes give a clearer picture of how Congress may regulate the crypto market as it works on broader legislation.
Key Facts at a Glance
The Senate Banking Committee released an updated draft of the Digital Asset Market Clarity Act on Monday
The proposal allows stablecoin rewards but bans yield earned solely from holding stablecoins
Certain tokens linked to ETFs may receive disclosure exemptionsThe exemption cutoff date is January 1, 2026The Senate Agriculture Committee delayed its markup until late January
Stablecoin Yield Moves to the Forefront
At the heart of the revised draft is a sharper distinction between permissible rewards and prohibited yield. The legislation allows incentives based on active stablecoin usage rather than on how long the assets are held.
Importantly, the bill makes clear that these activity-based rewards do not alter a stablecoin’s legal status. Specifically, they do not convert stablecoins into securities or banking products.
However, the draft draws a firm boundary immediately afterward. Any interest or yield paid solely for holding a payment stablecoin is explicitly banned. Additionally, this restriction applies regardless of whether compensation is issued in cash, tokens, or other forms.