🚨 REGULATORY UPDATE — CLARITY Act Section 404

The CLARITY Act introduces major changes for stablecoin platforms, reshaping how crypto rewards can function.

📌 Key Change:

Platforms are now prohibited from paying yield simply for holding stablecoins, preventing them from acting like traditional bank deposits.

🧠 What’s Still Allowed:

According to NS3.AI, rewards can still be offered when linked to active participation, including:

• On-chain transactions

• Liquidity provision

• Governance or protocol engagement

This marks a shift from passive yield to activity-based incentives, fundamentally changing crypto reward structures.

⚠️ Additional Requirements:

• Mandatory transparent disclosures

• Restrictions on issuer involvement in reward programs

These rules may introduce compliance challenges and reshape platform partnerships across the ecosystem.

$BTC $ETH $BNB

This isn’t just a policy tweak —

it’s a structural transformation for stablecoins and crypto incentives.

#CryptoRegulation #stablecoin #CLARITYAct #Web3Policy #CryptoNews