coinbase (NASDAQ:COIN) will be a big beneficiary CLARITY Act, and with reports stating that the legislation will increase prices as of May 11, everything is exchanged They are moving higher. As reported recently, an agreement on this issue has been reached. stablecoin surrender. Offering a wide range of financial services including digital assets, stablecoins and more, Coinbase heralds the future of how retail and institutional customers will engage with digital finance.
Coinbase Chief Legal Officer Paul Grewal gave a message of support to the language About stablecoin rewards One to mail In X:
“Judging by my feeds, the bounty language posted last night was either a complete gift to Coinbase, a complete surrender of Coinbase to the banks, or had nothing to do with Coinbase. I’d say that means it’s the right language to move forward.”
Grewal previously stated the conclusion regarding stablecoin rewards “It preserves activity-based rewards tied to actual participation in crypto platforms and networks, as the banking lobby says it wants. We have long believed that this issue does not require legislative change. “But anyway, we are focused on drafting a bill and are satisfied that this language should not be the basis for any objections.”
While the full language of the bill is not yet available, it has been widely reported that the language outlines the following structure for stablecoin yield.
- Stablecoin Return: Prohibits stablecoin issuers/platforms from offering rewards that are “economically or functionally equivalent to the payment of interest.”
- Allowed Rewards: Allows reward programs tied to “bona fide platform activity” or “activity-based participation” (e.g., the use of coins for transactions).
- Regulatory Action: Directs regulators to establish a disclosure framework and catalog of permissible reward activities.
The breakthrough toward reconciliation still has a journey ahead of Congress, as it must be resolved with the Senate Agriculture Committee, followed by a full Senate vote. The House and Senate versions also need to be harmonized before the legislation heads to the White House for signature.
While the entire process is laborious and should have moved faster, the legislation is the most impactful regulatory change since the ’33 Act. The CLARITY Act could also be the vector for greater U.S. dominance in the global financial services sector, a key sector for the country. Other countries are watching the legislation closely, and many will align their own rules with the implications of the U.S. rules.
Although Coinbase, the largest US crypto exchange, will make a big profit over time, other digital asset firms will also benefit. Banks could also benefit if they decide to ignore fears of change and regulatory hurdles.
