US lawmakers delayed the CLARITY Act once more after a public combat broke out over who ought to management stablecoin rewards, in line with business sources. Crypto costs stayed calm, however behind the scenes, rewards on digital {dollars} have turn into the principle stress level for exchanges and banks.
The larger subject is how Washington desires crypto {dollars} to work in each day life, whether or not they need to behave extra like cash in a financial savings account or simply one other piece of software program.
For normal customers, this debate hits near residence as a result of stablecoins are the closest factor crypto has to digital money. If the principles change, the small return individuals earn for holding these {dollars} on-line may shrink or transfer to platforms outdoors the US. Some firms are already making ready for that chance.
It additionally helps clarify why giant companies are actually pushing again on payments they as soon as supported. Regulation has stopped being theoretical and has began touching actual balances.
What the CLARITY Act Is and Why Rewards Are the Drawback
The CLARITY Act is supposed to determine who regulates crypto within the US. You possibly can consider it as a rulebook that decides which referee runs the sport. We’ve a full explainer on the CLARITY Act draft if you wish to dig deeper.
53 banking associations simply wrote themselves a $6.6 trillion safety invoice.
They referred to as it the CLARITY Act.
Here’s what they don’t want you to know.
Banks pay depositors 0.1% curiosity. Stablecoin issuers maintain Treasury payments incomes 4.5%. If stablecoins may cross… https://t.co/3UNjoucltx pic.twitter.com/sqDeduoVPa
— Shanaka Anslem Perera ⚡ (@shanaka86) January 15, 2026
The combat boils all the way down to rewards paid on stablecoins. A stablecoin is a digital token designed to remain close to one greenback, like USDC or USDT. Rewards are the small returns platforms pay customers, much like curiosity, usually generated from earnings on authorities bonds or lending.
Some lawmakers wish to restrict these rewards once they come from merely holding stablecoins. Supporters say this protects customers. Critics say it provides banks extra management.
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Who Beneficial properties and Who Loses If Rewards Get Reduce
Exchanges like Coinbase say rewards are why individuals preserve {dollars} in crypto apps moderately than conventional banks. Coinbase reported round $1.3 billion in stablecoin reward earnings in 2025, which helps clarify why it pulled assist for the invoice.
After reviewing the Senate Banking draft textual content over the past 48hrs, Coinbase sadly can’t assist the invoice as written.
There are too many points, together with:
– A defacto ban on tokenized equities– DeFi prohibitions, giving the federal government limitless entry to your monetary…
— Brian Armstrong (@brian_armstrong) January 14, 2026
Banks see issues otherwise. They argue that stablecoin rewards siphon funds from common accounts that pay little or no curiosity. That concern has already pushed regulators to tighten elements of the invoice, in line with a report by Stablecoin Insider.
For customers, the danger is easy. If US platforms can’t supply rewards, exercise might transfer abroad or into fewer firms. When competitors declines, charges often worsen.
Why App Builders Are Getting Nervous
Many crypto apps run on open-source software program moderately than being owned by a single firm. You possibly can image it like a merchandising machine that runs by itself, the place no supervisor stands behind the glass deciding who can use it.
The CLARITY Act tries to separate individuals who construct software program from firms that maintain buyer cash. Builders assist that line. If it turns into blurry, some might cease providing their instruments to US customers.
That would scale back the quantity of digital {dollars} shifting by way of these methods, slowing lending and buying and selling exercise.
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The Security Argument Regulators Are Utilizing
Regulators usually level to previous failures like Celsius and BlockFi. These platforms promised rewards with out clearly explaining the place the cash got here from. When markets turned, customers misplaced entry to their funds.
Lawmakers try to guard customers with out constructing a system that solely giant firms can afford to comply with.
Count on stronger language and heavier lobbying earlier than the subsequent vote. Till then, deal with stablecoin rewards as dangerous earnings and keep away from parking cash you want for hire or groceries simply to earn a bit of additional.
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