The Bernstein Counter-Thesis

Analyst Gautam Chhugani and his Bernstein colleagues argue the market misread the risk. “Circle earns. Coinbase distributes. The Clarity Act targets distribution,” they wrote in an investor note.

The proposal would ban companies from paying users simply for holding stablecoins in a way that resembles interest on bank deposits. 

However, carve-outs for activity-based rewards could still allow platforms to offer incentives linked to payments, trading, or loyalty programs.

Bernstein said the selloff “may not be calibrated enough” because rewards tied to bona fide activity may still be permitted under the draft language.

The Clarity Act Stablecoin Battle

Benzinga