The latest draft of the CLARITY Act still prohibits earning income solely from holding stablecoins

On May 12, the U.S. Senate Banking Committee released the latest 309-page draft of the CLARITY Act, but Section 404 of the draft stipulates that it prohibits rewards "solely for holding" stablecoins.

Specifically, no regulated entity may directly or indirectly pay any form of interest or yield (whether cash, tokens, or other consideration) to a restricted payee solely because the restricted payee holds its stablecoins, or pay stablecoin balance rewards in a manner economically or functionally equivalent to paying interest or yield on bank deposits.

However, the latest draft also stipulates that rewards and incentives for stablecoins based on real activities or transactions are allowed, such as rewards linked to actual transactions, payments, platform activities, liquidity provision, etc.