Stablecoin interest.Who may pay it, and who may not.
A dollar stablecoin is backed by T-bills that earn interest — but the holder usually gets none of it. In the US the GENIUS Act forbids issuers to pay interest, in the EU MiCA does the same. At the same time exchanges advertise “rewards” on stablecoin balances, and banks want that closed. The CLARITY Act, which would have drawn the line, failed in the Senate on 15 September 2026. Below: what each law says, the rewards dispute, the current status, and where yield on dollar tokens legally comes from.
Reviewed November 1, 2026 · figures from our live data
The short answer
US: the GENIUS Act (signed 18 July 2025) forbids issuers of payment stablecoins to pay interest or yield to holders just for holding. It takes effect by 18 January 2027 at the latest.
The ban names the issuer. Exchanges and other platforms pay “rewards” on stablecoin balances from their own share of the issuer’s income — the gap banks call a loophole.
The CLARITY Act would ban rewards that are economically equivalent to deposit interest but allow rewards tied to payments or other activity. It passed the House; in the Senate the vote to start debate failed 49–50 on 15 September 2026. No new vote is scheduled.
EU: MiCA forbids interest on e-money tokens for issuers and for crypto-asset service providers. Yield on dollar or euro tokens comes from other products: tokenized money market funds, yield-bearing tokens and DeFi lending — each with its own risk.
yield-bearing stablecoins in our data today
issuers
stated yield range across 9 with a rate
What the laws say
Three texts decide who may pay what. Two apply, one is stuck.
- 1
GENIUS Act — issuers may not pay interestUS only
The US stablecoin law forbids a permitted payment stablecoin issuer to pay holders any form of interest or yield, in cash, tokens or otherwise, solely for holding the stablecoin. Signed on 18 July 2025; it takes effect on 18 January 2027 or 120 days after the regulators’ final rules, whichever comes first. The OCC and the Treasury published draft rules in 2026.
- 2
CLARITY Act — would extend the line to platformsUS only
The market-structure bill for crypto. The Senate version would forbid rewards that are paid solely for holding a stablecoin or are economically or functionally equivalent to interest on a bank deposit, and keep rewards tied to payments, loyalty programmes and other activity. The House passed its version 294–134; the Senate Banking Committee approved its text 15–9 on 14 May 2026.
- 3
MiCA — no interest on e-money tokensEU only
In the EU, issuers of e-money tokens (euro and dollar stablecoins such as EURC and USDC) may not grant interest, and crypto-asset service providers — exchanges, brokers — may not grant interest on them either. Any payment linked to how long you hold the token counts as interest. Applies since 30 June 2024.
The rewards dispute: exchanges vs banks
The issuer earns interest on its reserve and may not pass it on. Whether a platform in between may do so is the open question in the US.
- 1
How exchange rewards workUS only
An issuer shares part of its reserve income with distribution partners. A US exchange can pass some of that on to customers as “rewards” on stablecoin balances. The GENIUS Act’s ban names the issuer, not the platform, so this is allowed under it.
- 2
What the banks say
Bank associations, led by the Bank Policy Institute and the American Bankers Association, call this a loophole: if a stablecoin pays like a savings account, deposits could leave banks, and with them money for loans. They asked Congress to extend the ban to exchanges, brokers and affiliates.
- 3
What the crypto firms say
Exchanges such as Coinbase argue that treating platform rewards and loyalty programmes as interest would rewrite the line Congress drew in the GENIUS Act, and protect banks from competition.
- 4
The compromise in the CLARITY textUS only
Rewards just for holding a balance are out; rewards for using the stablecoin — payments, transactions, loyalty programmes — stay allowed. Whether that holds depends on the bill passing.
Where the CLARITY Act stands
Status as of 1 November 2026.
- 1
House: passed
The House of Representatives passed the Digital Asset Market Clarity Act (H.R. 3633) by 294 to 134 votes.
- 2
Senate committee: approved 14 May 2026
The Senate Banking Committee approved its own text 15–9, including the compromise on stablecoin rewards.
- 3
Senate floor: failed 15 September 2026
The vote to begin debate failed 49–50, eleven short of the 60 needed. Beyond rewards, the main dispute was ethics rules on crypto holdings of officials.
- 4
What remains
A motion to reconsider was entered, so another vote is possible, but none is scheduled. Until a law passes, the GENIUS Act applies as written: no interest from issuers, platform rewards not covered by the ban.
Where yield on dollar tokens legally comes from
Because a payment stablecoin may not pay interest itself, yield on chain comes from products that are something else. Each carries a different risk.
- 1
Tokenized money market funds and T-bills
Fund units or notes that pass on the interest of short-term government debt — BUIDL, BENJI, USYC, USDY and others. They are securities, often with KYC and minimums, and many are not open to US retail investors.
- 2
Yield-bearing stablecoins
Tokens that are designed to earn — from T-bills, from trading strategies or from lending. They are not payment stablecoins under the GENIUS Act or MiCA e-money tokens, and they do not have the same protection.
- 3
DeFi lending
Lending your stablecoins to borrowers through a protocol. The rate moves with demand every day, and the risk is the protocol’s code and its collateral, not a reserve.
- 4
Platform rewards
Exchange rewards on stablecoin balances: a promotional rate the platform can change or end at any time, and in the US possibly restricted if the CLARITY Act passes. In the EU, platforms may not pay interest on e-money tokens.
The 9 highest stated yields
Yields as stated by the issuer or read on chain, with the date they were checked on each token page. Not a recommendation.
| Token | Issuer | Yield | Minimum |
|---|---|---|---|
| usd.ai (staked) | usd.ai | ~6.77% (variable) | None |
| Curve Savings crvUSD | Curve Finance | ~5.83% (variable) | None |
| Staked Frax USD | Frax Finance | ~5.3% (~4-5%) | None |
| Ethena Staked USDe | Ethena Labs | ~5.0% (variable) | None |
| Usual USD0++ | Usual | ~4.47% (T-bill base + USUAL rewards) | None |
| Figure YLDS | Figure Markets | ~4% (SOFR-linked) | None |
| Sky Savings Token | Sky (MakerDAO) | ~3.8% | None |
| Falcon USDf (staked) | Falcon Finance | ~3.66% (variable) | None |
| Savings DAI | Sky (MakerDAO) | ~1.25% | None |
Questions
Can stablecoins pay interest in the US?+
Not from the issuer. The GENIUS Act forbids issuers of payment stablecoins to pay holders interest or yield for holding. Exchanges may still pay rewards from their own income, unless a later law such as the CLARITY Act restricts it.
Is the CLARITY Act law?+
No. It passed the House, but in the Senate the vote to begin debate failed 49–50 on 15 September 2026. Another vote is possible but not scheduled (status 1 November 2026).
When does the GENIUS Act take effect?+
On 18 January 2027, or 120 days after the regulators publish their final rules, whichever comes first.
Can I earn interest on USDC or EURC in the EU?+
Not as interest from the issuer or from an exchange: MiCA forbids both for e-money tokens. Yield in the EU comes from other products, such as tokenized money market funds or DeFi lending, with their own risks.
Why do exchanges pay rewards on stablecoins?+
Issuers earn interest on their reserves and share part of it with distribution partners. An exchange can pass some on as rewards to attract balances. In the US this is outside the GENIUS Act’s ban, which names the issuer.
Are tokenized deposits allowed to pay interest?+
Yes. A tokenized deposit is a bank deposit, and the bank decides whether to pay interest, as on any account. The stablecoin interest bans do not apply to it.
- Yield-bearing stablecoins explained →
- Tokenized deposits explained →
- Tokenized money market funds →
- MiCA explained →
- Congress.gov — GENIUS Act (S. 1582)
- Congress.gov — Digital Asset Market Clarity Act (H.R. 3633)
- CoinDesk — Clarity Act text lets crypto firms offer stablecoin rewards (1 May 2026)
- Banking Dive — Senate panel approves crypto bill
- Forbes — Failure of Clarity Act cloture vote (16 Sep 2026)
- The Block — OCC proposal to implement the GENIUS Act (25 Feb 2026)
- Brookings — Interest by any other name
- EUR-Lex — MiCA Regulation (EU) 2023/1114
This guide explains how these products work and is not investment advice or an offer of any security. Who may buy a product is set by its issuer; check the offering documents before investing.