US Senate bill may limit interest on passively held stablecoins

A draft bill from the U.S. Senate Banking Committee could make it difficult to earn interest for simply holding stablecoins, according to Eleanor Terrett, host of Crypto in America. A provision in the proposed Crypto-Asset L-C-M-S-T Protection and Enhancement Act (CLARITY Act) would only permit interest or rewards on stablecoins when linked to substantive activities such as opening an account, trading, staking, or providing liquidity. Terrett noted that senators have a 48-hour window to submit amendments, and it remains uncertain whether the provision will be retained in the bill by Jan. 15.