The CLARITY Act is inching closer to the finish line: Stablecoins won't earn interest just for holding them.
The model of 'buying stablecoins and just holding them for interest' will no longer be allowed, as it’s too similar to depositing money in a bank without facing the same level of regulation.
Users can still earn rewards if the stablecoins are actively used in real-world activities on the platform, like trading, payments, or participating in the ecosystem.
The main reason behind this is to protect the traditional banking system. If stablecoins could pay interest like deposits, they’d be in direct competition with banks but without the same stringent regulations.
The model of 'buying stablecoins and just holding them for interest' will no longer be allowed, as it’s too similar to depositing money in a bank without facing the same level of regulation.
Users can still earn rewards if the stablecoins are actively used in real-world activities on the platform, like trading, payments, or participating in the ecosystem.
The main reason behind this is to protect the traditional banking system. If stablecoins could pay interest like deposits, they’d be in direct competition with banks but without the same stringent regulations.