A long-running battle over stablecoin rewards in the U.S. may finally be nearing a breakthrough. Lawmakers, crypto firms, banks, and the White House are now revisiting key provisions under the Digital Asset Market Clarity Act—and this time, there’s growing optimism that a compromise is within reach.
Fresh momentum in Washington
Behind closed doors, negotiations around stablecoin yields have picked up pace. According to policy insiders, both the crypto and banking sectors are reviewing updated proposals that could resolve one of the bill’s most contentious issues.
Earlier versions of the legislation faced strong resistance. Companies like Coinbase and Stripe pushed back against proposals to ban passive rewards on stablecoins. They argued such restrictions would hurt innovation and cut off a major revenue stream.
That tension may now be easing. Paul Grewal recently suggested that an agreement on yields is “very close,” even though earlier drafts limited rewards to narrowly defined activities.
Meanwhile, Brian Armstrong has openly criticized banks, accusing them of trying to block crypto-friendly policies. He pointed out that stablecoin yields—often in the 4–5% range—are tied to returns from U.S. Treasury-backed reserves, as required under the GENIUS Act.
White House leans pro-crypto
Adding to the momentum, a forthcoming report from the White House is expected to take a supportive stance on stablecoin rewards. Patrick Witt has indicated that yield-bearing stablecoins should not be seen as a threat to traditional banks.
Instead, the administration appears to view the situation as an opportunity for both industries to coexist and evolve together.
Still, banks remain cautious. Community banking groups have warned lawmakers that stablecoin yields could pull billions of dollars away from traditional deposits. Some Wall Street estimates suggest that interest-bearing stablecoins might drain up to $500 billion from the banking system by 2028 if left unchecked.
What comes next?
If lawmakers manage to settle the yield debate in the coming weeks, attention is likely to shift quickly to other unresolved issues in the Clarity Act. These include how decentralized finance (DeFi) should be regulated, how tokenized assets are treated, and whether certain tokens fall under securities or commodities law.
Stablecoins are already at the center of this discussion. Assets like USD Coin—with a market value exceeding $70 billion—play a growing role in both payments and on-chain yield strategies.
With the bill’s chances of passing this year now estimated at around 64%, the coming weeks could be crucial. The outcome won’t just shape regulation—it could define how Americans earn returns on digital dollars while staying within the traditional financial system.
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