# Crypto Clarity Draft Curbs Stablecoin Rewards, Alarms Industry Insiders

*Author: Jack Inabinet*
*Published: Mar 24, 2026*
*Source: https://www.bankless.com/read/news/crypto-clarit-draft-bans-stablecoin-rewards-coindesk*

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Citing an anonymous source who has advance knowledge on draft crypto clarity legislation, CoinDesk eloquently [reports](https://www.coindesk.com/policy/2026/03/23/stablecoin-yield-in-crypto-clarity-act-won-t-allow-rewards-on-balances-latest-text-says) that, "The newest language on stablecoin yield in the Clarity Act has crypto insiders cringing." 

### What's the Scoop?
- **Advance Copy:** As [reported](https://www.coindesk.com/policy/2026/03/23/stablecoin-yield-in-crypto-clarity-act-won-t-allow-rewards-on-balances-latest-text-says) by CoinDesk, crypto industry insiders were recently afforded an early look into the Senate Banking Committee's upcoming draft of the [Digital Asset Market Clarity Act](https://www.bankless.com/read/cryptos-clarity-bill-hangups).
- **Unsatisfactory Draft:** According to CoinDesk, "the opening impression was that the language on allowable stablecoin yield was overly narrow and unclear, according to a person familiar with the current draft." This draft bill allegedly grants reward programs on a narrow basis, so long as they don't resemble interest on bank deposits in any way.
- **Yield Agreement: **Last Friday, two Senate Banking Committee members [announced](https://www.bankless.com/read/news/senators-white-house-reach-agreement-on-stablecoin-yield) they had struck "an agreement in principle" with each other and the White House on stablecoin yield legislation, which would ban yield payments “on a passive balance.”
- **Existing Prohibition:** The GENIUS Act, which regulates permissible activity for payment stablecoins in the United States, explicitly [prohibits](https://www.bankless.com/read/how-genius-shakes-up-the-stablecoin-wars) issuers from offering any type of yield or interest on their instruments.
[Stablecoin yield in crypto Clarity Act won’t allow rewards on balances, latest text saysThe crypto industry got a first look at legislative language that won’t allow rewards on stablecoin balances, and the approach is seen as restrictive.![](https://storage.ghost.io/c/e4/b7/e4b77544-5a37-4f0b-8824-8440aa348476/content/images/icon/apple-touch-icon-180x180-3.png)CoinDeskJesse Hamilton![](https://storage.ghost.io/c/e4/b7/e4b77544-5a37-4f0b-8824-8440aa348476/content/images/thumbnail/2737fc81dcd8f6f6f4cdfb9010c6ee9c3c8e7c72-6000x3376.jpg)](https://www.coindesk.com/policy/2026/03/23/stablecoin-yield-in-crypto-clarity-act-won-t-allow-rewards-on-balances-latest-text-says)
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