U.S. Crypto Bill Stalls as Banks Clash With Industry Over Stablecoin Rewards
Negotiations for the CLARITY Act have stalled amid opposition from traditional banks against proposed stablecoin reward programs. The bill, which passed the House in July, seeks to establish regulatory clarity by dividing oversight between the CFTC (commodities like BTC) and SEC (securities).
At issue are 3-4% yield offerings on stablecoins—a feature crypto firms argue is necessary to compete in digital payments. Banks warn this could trigger deposit flight. The impasse delays what proponents call critical legal infrastructure for the $2T crypto market.
All eyes now turn to the SEC's April 16 roundtable, where regulators and industry leaders will debate the path forward. The outcome may determine whether America maintains pace with jurisdictions like the EU and UK on crypto regulation.
