Stablecoins cannot be promoted with interest- or reward-like incentives that effectively compete with regulated bank deposits. The measure restricts such incentives to preserve the boundaries between crypto products and traditional bank offerings. In doing so, the policy underscores the goal of avoiding promotions that blur the line between crypto assets and conventional deposits. A forthcoming bill would prohibit promoting stablecoins with interest- or reward-like incentives that effectively compete with regulated bank deposits.
The rule aims to preserve clear boundaries between crypto products and traditional banking offerings. By limiting such incentives, policymakers hope to prevent promotions that blur the line between digital assets and conventional deposits. Supporters say the restrictions promote market clarity and protect consumers by separating crypto products from traditional banking. Critics argue the measure could curb competition and limit options for small and minority-owned businesses relying on alternative funding channels.
The debate centers on balancing innovation with financial stability. Ultimately, the policy reinforces the goal of keeping crypto products distinct from traditional deposits and avoiding marketing that blurs the line. Regulators will scrutinize how incentives are defined and enforced as the proposal advances.
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