The U.S. push for a clearer crypto regulatory framework has hit another obstacle. The CLARITY Act, widely seen as an important effort to define oversight across the digital asset market, has been delayed as negotiations broke down over how stablecoin rewards should be treated. A White House compromise proposal failed to win support from banks, leaving the bill’s progress uncertain.
Stablecoin rewards become the central fault line
At the center of the dispute is whether stablecoin issuers should be allowed to offer user rewards of around 3% to 4%. Crypto firms support such incentives as a way to attract users and strengthen adoption. Banks, however, argue that reward-bearing stablecoins could pull as much as $500 billion out of traditional deposits, reducing funding available for lending and putting pressure on the conventional banking model.
The White House reportedly proposed a middle-ground approach that would limit rewards to specific uses. But that proposal did not secure backing from the banking sector, and the talks have now stalled. As a result, momentum behind the CLARITY Act has slowed significantly.
SEC roundtable now in the spotlight
With the legislative process facing delays, attention is shifting to the U.S. Securities and Exchange Commission’s roundtable scheduled for April 16. Regulators and industry participants are expected to discuss the future of digital asset rules, making the event an important checkpoint for market observers looking for signals on U.S. crypto policy.
The bill still aims to clarify regulatory lines
The CLARITY Act passed the House in July last year and was designed to provide a clearer division of authority in crypto regulation. Under the proposed framework, the CFTC would oversee digital commodities, while the SEC would continue regulating securities. Supporters have viewed the bill as a meaningful step toward reducing uncertainty in the U.S. crypto market.
Still, with disagreement over stablecoin rewards unresolved and the banking industry remaining opposed, final enactment may be pushed back until 2026. For now, the broader effort to build a stable U.S. digital asset rulebook remains subject to intense policy and industry debate.