The proposed legislation directs regulators to develop more detailed stablecoin reward rules after the bill becomes law. The Treasury Department and the Commodity Futures Trading Commission would lead the rulemaking process.
Regulators would also create a stablecoin disclosure system and define permissible reward activities. These rules could decide how crypto firms structure incentives for users in future products.
allows regulators to consider several factors when reviewing reward programs. These may include user balance, duration, tenure, activity type, and whether an incentive program is involved.
It also includes anti-evasion language. This part aims to stop companies from using affiliates or indirect arrangements to offer banned yield products.
Corey Frayer, director of investor protection at the Consumer Federation of America, said the wording could give regulators room to define what crypto companies may do with reward products.
