Crypto▼ Bearish
Banks Oppose Stablecoin Rewards as CLARITY Act Nears Vote
Senate procedural vote on CLARITY Act set for Sept. 15. Banks oppose stablecoin rewards resembling interest. Prediction markets see 18.5% odds by 2026, down from prior weeks.
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The odds of the CLARITY Act becoming law by 2026 stand at 18.5% on prediction markets, a slight decline from prior weeks. Banks are pushing back against stablecoin reward provisions that could reshape how crypto platforms compete for retail deposits.
The probability has edged down from roughly 20% earlier in the summer, reflecting the intensifying lobbying battle. Banks argue that stablecoin rewards function like interest, which only deposit-taking institutions can offer. Crypto platforms say the rewards are loyalty incentives tied to platform usage, not bank products.
The Senate returns from recess next month for a procedural vote on Sept. 15. The bill, a crypto market structure bill, would restrict rewards on stablecoin holdings that resemble interest on bank deposits. Activity-based incentives, such as discounts on trading fees, would still be allowed under the current text.
The stablecoins most directly affected are USDC and USDT. Platforms that offer yield-bearing products using these tokens would need to restructure or shut down those programs if the rewards ban survives the legislative process.