CLARITY Act faces Senate vote as banks oppose stablecoin rewards

https://www.fintechweekly.com/news/clarity-act-stablecoin-yield-resolved-community-bank-deregulation-senate-march-2026 The ongoing debate surrounding the U.S. CLARITY Act is intensifying as banks push back against crypto platforms offering rewards on stablecoin holdings. The Senate is preparing for a crucial vote in September that will determine the future of this crypto market-structure bill. Central to this dispute is whether stablecoin holders can receive rewards or yields that resemble interest on bank deposits. The current language in the bill restricts such rewards, although it allows for certain activity-based incentives. The Senate is currently in recess, and a procedural vote is scheduled for mid-September. This development has caught the attention of market participants, as the regulatory decision could significantly affect stablecoins like USDC and USDT, along with the platforms offering these digital assets. The potential restriction on stablecoin rewards could impact the likelihood of the CLARITY Act being signed into law, as banks and crypto platforms vie for influence over the legislative process. Market data suggests a slight decrease in the probability of the CLARI...