U.S. Congress Faces Deadline to Clarify Crypto Rules as Banks Push Back on Stablecoin Yields
The CLARITY Act, a pivotal piece of legislation aimed at establishing comprehensive regulations for the U.S. crypto market, is racing against a political deadline. Banks are intensifying pressure on lawmakers to prevent stablecoin issuers from offering yield-like rewards, framing it as a threat to traditional deposits. The debate centers on whether dollar-pegged tokens should remain payment-focused or evolve into bank-account competitors.
Senate negotiations have stalled over the classification of stablecoin rewards—whether they constitute interest, rebates, or loyalty perks. Industry insiders suggest late April or early May as the critical window for progress before midterm elections dominate the legislative calendar. The outcome could redefine the competitive landscape between crypto and traditional finance.
