A dispute over whether crypto firms can offer rewards on stablecoin holdings has stalled the U.S. Senate's Clarity Act. Senator Angela Alsobrooks addressed the standoff Tuesday at the American Bankers Association Summit in Washington, D.C., noting that lawmakers are negotiating compromises to revive the crypto market structure bill. Crypto In America reported the details.
Deposit Flight Warnings vs. Limited Evidence
Community banks argue stablecoin reward programs could trigger a deposit exodus, as customers might shift funds to higher-yield crypto products. Naomi Camper, the ABA's policy chief, emphasized smaller banks' fears. Crypto advocates counter that such reward programs already operate without causing major deposit shifts. Patrick Witt, executive director of the White House Crypto Council, questioned on X whether deposit flight has actually occurred.
Alsobrooks said negotiations may leave both industries partly dissatisfied. She stressed the need to balance innovation with financial stability. The senator is working with Senator Thom Tillis on legislative adjustments after meeting with banking and crypto stakeholders. The bill's discussions follow earlier White House-facilitated talks.
Regulators Push for Joint Action
Meanwhile, SEC Chair Paul Atkins outlined proposals at a futures industry conference in Boca Raton. He called for ending overlapping enforcement between the SEC and CFTC, aligning legal theories for same-conduct probes, and adopting substituted compliance. The SEC will launch a harmonization webpage and may hold joint meetings for new product applications. Separately, the CFTC is reviewing potential office locations near SEC headquarters, according to an internal source cited by Crypto In America.
The Senate Banking Committee's ability to advance the Clarity Act hinges on resolving the stablecoin reward impasse. Lawmakers are still searching for a middle ground.