The U.S. Senate Banking Committee is scheduled to review and vote on the Digital Asset Market Transparency Act (also known as the Market Structure Act or the CLARITY Act) on January 15.
This bill aims to establish a comprehensive regulatory framework for the U.S. crypto market, classifying tokens as digital commodities rather than securities, and clearly delineating the regulatory responsibilities of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
As the legislative process advances, disputes over stablecoin rewards have emerged as a major stumbling block. The standoff between the banking sector and the crypto industry could ultimately determine the fate of the bill.
01 Background of the Bill
The U.S. Congress is accelerating efforts to reform cryptocurrency policy, with the Market Structure Act now at the center of attention. Both the Senate Banking Committee and the Agriculture Committee are preparing their own drafts, working together to advance this legislation.
At its core, the bill seeks to clearly define the classification and regulatory responsibilities for digital assets, categorizing most tokens as digital commodities rather than securities, and creating a CFTC regulatory framework for digital commodity exchanges.
The bill also exempts crypto platforms from the requirement to register as national securities exchanges, subjects decentralized protocols only to anti-fraud rules, and aims to bring crypto activities back to the U.S. while streamlining the token listing process domestically.
According to the latest reports, the Senate Banking Committee plans to review and vote on the bill on January 15. This timing reflects a strategic calculation by Republican leadership, who hope to complete the legislative work before a potential government shutdown.
02 Points of Contention
The issue of stablecoin rewards has become the main point of contention in the current legislative process. The GENIUS Act, passed last year, prohibits stablecoin issuers from directly paying yields to holders but allows crypto platforms and affiliates to offer rewards to users.
Currently, platforms like Coinbase offer annual stablecoin rewards of around 2% to 4%. For example, Coinbase provides a 3.5% reward on USDC balances held in Coinbase One accounts.
The banking industry strongly opposes these incentives, arguing that they could lead to deposit outflows and threaten traditional banking operations. In a letter, the American Bankers Association warned that if billions of dollars flow out of community bank loans, small businesses, farmers, students, and homebuyers would be affected.
The stablecoin market now exceeds $275 billion and could reach the trillions in the future, potentially becoming "systemically important." The banking sector fears that the growth of this market could pose a systemic threat.
The crypto industry, on the other hand, insists that reopening this debate would undermine the hard-won legislative compromise of the GENIUS Act and is both anti-competitive and anti-free market. Coinbase Chief Policy Officer Faryar Shirzad argued that restricting stablecoin rewards could weaken the dollar’s dominance, especially given China’s recent announcement that it plans to pay interest on its digital yuan.
03 Industry Response
The crypto industry has reacted strongly to the legislative process, with Coinbase stating that if the bill imposes broader restrictions on stablecoin rewards, it may reconsider its support for the legislation.
Stablecoin rewards are vital to Coinbase’s business. The company shares a portion of the interest income generated from USDC reserves with Circle, and USDC held on Coinbase provides a stable source of revenue.
According to Bloomberg, Coinbase’s stablecoin revenue is expected to reach $1.3 billion in 2025. If the Market Structure Act bans these incentives, fewer people will hold stablecoins on exchanges, and Coinbase’s total stablecoin revenue could decline.
Bernstein analysts warned in a client report that tensions are rising between the banking sector and crypto platforms over whether exchanges should be allowed to offer yield-like rewards on stablecoin balances. They noted that the stablecoin rewards issue has become a "red line," and failure to reach a compromise could delay or derail the bill.
04 Potential Compromises
Amid the heated standoff, lawmakers are seeking possible middle ground. According to people familiar with the discussions, one potential compromise would allow only financial institutions with a banking license or similar qualifications to offer stablecoin balance rewards.
Recently, five crypto companies received conditional approval from the Office of the Comptroller of the Currency to become national trust banks. These approvals have also sparked fierce opposition from banking lobby groups, who argue that crypto firms could threaten the stability of the U.S. financial system.
If such restrictions are implemented, some industry insiders believe it would only spark a new round of cat-and-mouse, as crypto companies would look for new ways to reward users. "In a world where you hold stablecoins within an app, that app will always find some way to reward you for doing so," said William Gaybrick, President of Technology and Business at payments giant Stripe.
Political timing is critical. Bernstein analysts noted that the bill must advance no later than the second quarter of 2026 to avoid being impacted by the dynamics of the midterm elections. The firm stated that the pro-crypto stance of the Trump administration has given the industry an edge, but warned that if the rewards dispute drags on, this momentum could still stall.
05 Market Impact
The progress of crypto legislation is closely tied to market performance. On Gate, the prices of major cryptocurrencies reflect investors’ sensitivity to changes in the regulatory environment.
Several major token unlock events are scheduled this week, which could exert selling pressure on the market. These include the unlocking of approximately 92.65 million Arbitrum (ARB) tokens (worth about $19.2 million) on January 16, and about 50 million Official Trump (TRUMP) tokens (worth about $271 million) on January 18.
Bernstein analysts pointed out that the "window of opportunity is now," warning that unresolved disputes over stablecoin rewards could undermine the legislative process.
Outlook
According to the plan, the Senate Banking Committee will review the Digital Asset Market Transparency Act on January 15. The stablecoin rewards issue has become the primary point of contention, with the banking and crypto industries clearly at odds.
Coinbase has hinted that it may withdraw support if the bill restricts stablecoin rewards. However, analysts believe crypto platforms will always find new ways to reward users—after all, "in a world where you hold stablecoins within an app, that app will always find some way to reward you for doing so."
Regardless of the outcome, this legislative debate in Washington has moved far beyond policy-making, becoming a pivotal contest that will shape the future of the trillion-dollar crypto market. As the January 15 vote approaches, all eyes in the market are on the Senate Banking Committee’s meeting room.
