CLARITY Act May Ban Stablecoin Rewards, Certain CEX Faces Business Strategy Adjustment

Gate News reports that on March 19, if the proposed CLARITY Act is passed, a certain CEX may face restrictions on offering stablecoin rewards, which could impact its strategy of using digital dollar incentives to attract users. The bill has been stalled in Congress since January and aims to establish a regulatory framework for stablecoins. One point of controversy is whether companies can share profits with stablecoin holders. Although the bill prohibits direct interest payments, analysts believe alternative structures may still allow rewards to reach users. Despite potential bans, analysts think the impact on the operations of the certain CEX will be limited. Stablecoin rewards are just one of many tools the company uses to attract users; trading and derivatives remain significant sources of revenue. Brian Armstrong, CEO of the certain CEX, stated that the ban could improve profitability by reducing reward expenses, but he emphasized the importance of maintaining competitive stablecoin incentives. As negotiations continue, the outcome remains uncertain, but crypto companies are expected to adapt and adjust to ensure stablecoins remain a viable component of digital payments.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

GOP Leaders Press Commerce Secretary Lutnick Over Crypto PAC's $1.75M Texas Political Spend

Gate News message, April 24 — Senior Republican officials contacted Commerce Secretary Howard Lutnick this week after Fellowship PAC, a crypto super PAC seeded by Cantor Fitzgerald (the firm Lutnick previously ran), signaled in a federal filing that it planned to spend $1.75 million backing Texas

GateNews4h ago

China's Central Bank and Eight Agencies Ban Network Marketing Services for Virtual Currency Trading

Gate News message, April 24 — China's central bank (PBoC) and seven other government agencies jointly issued the Financial Products Network Marketing Management Measures, which will take effect on September 30, 2026. The new regulations systematically govern financial product online marketing

GateNews5h ago

Hong Kong SFC Strengthens Global Regulatory Cooperation to Combat Illegal Activities by Financial Influencers

Gate News message, April 24 — Hong Kong's Securities and Futures Commission (SFC) announced it is working with securities regulators worldwide to combat illegal activities by financial influencers. Over the past year, the SFC has made progress through enforcement actions and collaboration with

GateNews6h ago

Wisconsin Sues Kalshi, Polymarket, Coinbase Over Sports Betting Contracts

The Wisconsin Department of Justice filed three complaints on Thursday in Dane County against Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com, alleging that their sports-related event contract offerings constitute illegal gambling under state law. Wisconsin Attorney General Josh Kaul stated

CryptoFrontier7h ago

Taiwan’s 14 brokerage firms have launched virtual asset ETFs via omnibus authorization for cross-advisory (sub-advisory) arrangements, with cumulative trading exceeding NT$98.99 billion New Taiwan dollars

According to the latest statistics provided by the Securities and Futures Bureau of the Financial Supervisory Commission, as of the end of March 2026, a total of 14 securities firms in Taiwan have launched virtual asset ETF cross-border/overseas custody (futures commission) re-delegation business, with cumulative trading exceeding NT$9.9B. Huang Zhonghao, Deputy Director of the Securities and Futures Bureau of Taiwan, stated that the Financial Supervisory Commission (FSC) has required the securities firms’ association to submit an assessment report on the performance of the virtual asset ETF cross-border/overseas custody (futures commission) re-delegation business over the past year, and that the assessment will expand eligibility to retail investors.

MarketWhisper8h ago

Bernie Sanders: Crypto projects like WLFI have contributed more than $3 billion to the Trump family

American independent senator Bernie Sanders of Vermont posted on the X platform on April 24, citing a report published in the January issue of The New Yorker, listing a breakdown of the income allegedly earned by the Trump family through cryptocurrency, Gulf transactions, and other sources, with an estimated total of $4.05 billion.

MarketWhisper8h ago
Comment
0/400
No comments