Transaction rewards preserve stablecoin yield utility
The compromise allowing transaction-based rewards in the Clarity Act preserves the utility of stablecoin yields through active user engagement.
The argument
The speakers discussed how Coinbase negotiated a compromise to allow 'do stuff' rewards (like transaction-based incentives) rather than passive bank-like interest, showcasing how crypto firms can navigate yield restrictions.
The thesis, stress-tested
✓ What validates it
- ✓SEC or Treasury issuing favorable guidance on transaction-based reward structures
- ✓Coinbase successfully maintaining or expanding its USDC rewards program under the new rules
▸ Risks discussed
- ▸Regulators may narrowly define what constitutes 'doing stuff' to limit yields
- ▸Lobbying from banks could reignite the yield debate on the Senate floor
Hear it yourself
"That was bipartisan under Biden in '23. Okay. Trump gets elected. He's like, okay. That thing didn't get all the way to the senate. I'm gonna make sure that the future version of this, now called Clarity, is going to pass. That's a cornerstone of his crypto agenda for United States becoming the crypto capital of the world. Okay. We get the genius act. I don't think that happened under Biden. I think it happened under Trump. When it got out of '21? Yeah. When it got out of the house. But maybe I'm wrong. I'm pretty sure it happened under Biden."
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