Banks escalate stablecoin rewards fight as Senate prepares for a Clarity Act vote - CoinDesk

The banking industry is intensifying its pushback on stablecoin reward programs as the U.S. Senate moves toward a vote on the Clarity Act, according to CoinDesk. The dispute centers on whether stablecoin issuers and platforms should be permitted to offer yield or rewards to holders — a feature banks argue could draw deposits away from traditional accounts and blur the line between regulated banking and digital assets.

The timing matters because the Clarity Act is expected to shape how digital assets are classified and overseen. If the legislation clarifies that certain stablecoin rewards fall outside deposit-taking rules, issuers could expand incentive programs; if it tightens restrictions, platforms may need to restructure their offerings. Either outcome would affect how stablecoins compete with bank deposits as a store of value.

For market participants, the key variables are the bill's final language on rewards, the scope of any bank-style safeguards it imposes, and how regulators interpret the text once passed. Until the vote and subsequent rulemaking clarify these points, stablecoin economics — and the competitive balance between banks and crypto platforms — remain unsettled.