The Digital ***** et Market Clarity Act is major crypto legislation and its primary goal is to establish a regulatory framework for virtual ***** ets in the United States by clarifying the jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
But the legislation has proven to be controversial because of the stalemate between the banking and crypto industries over a provision concerning stablecoin rewards.
A stablecoin is a type of cryptocurrency that tries to keep its value stable by being pegged to a fiat currency like the U.S. dollar.
Related: Explained: What is a stablecoin?
A provision of the bill allows limited rewards for stablecoin holders in which users can earn yields on stablecoin payments, transfers, settlements, etc. However, a user can't earn rewards simply for holding stablecoins.