Banks are lobbying against a provision in the U.S. CLARITY Act that would let crypto platforms pay reward-like yields on stablecoin holdings, as the crypto market-structure bill heads toward a Senate procedural vote in September. Prediction markets now put the odds of the bill becoming law by January 1, 2027 at 18.5%, a slight decrease that reflects growing uncertainty over the outcome.
Banks are pushing back against crypto platforms that want to offer rewards resembling interest on stablecoin holdings, intensifying a dispute at the center of the CLARITY Act as the Senate prepares for a crucial vote in September. The bill would set the market-structure rules for U.S. crypto regulation, and its fate now hinges partly on this fight over stablecoin rewards.
Banks oppose stablecoin rewards
The clash centers on whether stablecoin holders can receive rewards or yields that resemble interest paid on bank deposits. The bill's current language restricts such rewards, though it still allows certain activity-based incentives. A restriction on rewards could affect stablecoins like USDC and USDT, along with the platforms that offer them, as banks and crypto platforms vie for influence over the legislative process.
Senate vote looms in September
The Senate is currently in recess, with a procedural vote scheduled for mid-September. Observers will watch that vote for signs of where the legislation is headed, and statements from President Donald Trump, Senate Banking Committee Chair Tim Scott, and White House Crypto Adviser David Sacks may offer further clues. Developments that align with the bill's passage, such as bipartisan support or favorable White House commentary, could shift market perceptions of its future.
Odds slip on prediction markets
Market pricing currently puts the odds of the CLARITY Act being signed into law by 2026 at 18.5% for the sub-market ending January 1, 2027, a minor decrease from previous levels. The shift indicates growing uncertainty among market participants as banks and crypto platforms continue to clash over the bill's stablecoin provisions.
Source: Crypto Briefing
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