-
Dispute over stablecoin reward programs between banks and crypto firms has slowed progress on the Senate Clarity Act.
-
Banks warn rewards could trigger deposit flight, while crypto advocates say evidence of major shifts is limited.
-
Lawmakers including Sens. Alsobrooks and Tillis are negotiating compromises to advance the crypto bill.
A dispute between banks and crypto firms over stablecoin rewards has stalled progress on the Senate’s Clarity Act. Speaking Tuesday at the American Bankers Association Summit in Washington, D.C., Senator Angela Alsobrooks addressed the conflict directly. According to Crypto In America, lawmakers now seek compromises to move the crypto market structure bill forward.
Senators Seek Middle Ground on Stablecoin Rules
Senator Angela Alsobrooks spoke with American Bankers Association policy chief Naomi Camper during the summit discussion. She said negotiations may leave both industries partly dissatisfied.
Alsobrooks explained that lawmakers must balance innovation with financial stability concerns. She added that compromise remains necessary to advance the Clarity Act. The senator has worked with Senator Thom Tillis on possible legislative adjustments. Both lawmakers recently met with banking and crypto stakeholders to review draft text.
According to Alsobrooks, the proposal aims to introduce guardrails while supporting new financial technologies. The discussions followed negotiations previously organized by the White House.
Banks Warn About Deposit Flight Risks
The central disagreement concerns whether crypto firms should offer rewards on stablecoin holdings. Community banks argue such incentives could draw deposits away from traditional accounts.
Naomi Camper emphasized that smaller banks worry about potential deposit flight. Customers might move funds to higher-yield stablecoin products offered by crypto platforms. However, crypto advocates dispute those concerns.
They argue stablecoin reward programs already exist without triggering large deposit shifts. White House Crypto Council Executive Director Patrick Witt also addressed the issue publicly. Writing on X, he questioned whether deposit flight has actually occurred.
Meanwhile, negotiations continue as lawmakers seek agreement on the remaining provisions. Senate Banking Committee action depends on resolving these differences.
Regulators Explore Closer Coordination
While legislative talks continue, regulators also discussed closer cooperation. SEC Chair Paul Atkins outlined several proposals during a futures industry conference in Boca Raton.
Atkins said regulators should end overlapping enforcement actions between the SEC and CFTC. Instead, both agencies could align legal theories when investigating the same conduct.
He also proposed substituted compliance between regulatory regimes. Under that model, firms meeting one agency’s standards could satisfy similar requirements elsewhere. Additionally, the SEC plans to launch a harmonization webpage for coordinated guidance requests. The agencies may also hold joint meetings for new financial product applications.
Meanwhile, discussions continue about relocating the CFTC near the SEC headquarters in Washington. According to a CFTC source cited by Crypto In America, officials still review several potential locations.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Pakistan Lifts an Eight-Year Ban: Central Bank Allows Banks to Serve Crypto Businesses, and the Virtual Assets Law Takes Effect
On April 14, 2026, the State Bank of Pakistan lifted its crypto-assets banking ban that has been in place since 2018, officially kicking off the Virtual Assets Act 2026. Banks may open accounts for licensed virtual asset service providers, but must establish a segregation-of-funds mechanism to ensure that customers’ funds are not affected. This policy change responds to domestic demand and demonstrates Pakistan’s growing role on the international stage.
ChainNewsAbmedia2h ago
The central bank issues a digital currency report—does it directly refute Qu Bo? If Taiwan issues a CBDC, merchants generally cannot refuse to accept it
The central bank released a report stating that Taiwan’s CBDC development will follow a phased promotion strategy. In the short term, it is not urgent to issue retail CBDC; the focus is on wholesale CBDC and the infrastructure for asset tokenization. The central bank emphasized that CBDC will not increase the money supply and will have legal standing. As a rule, merchants may not refuse to accept it, in order to prevent the payment market from becoming overly dependent on the private sector.
ChainNewsAbmedia4h ago
White House Report Challenges Stablecoin Yield Ban, CLARITY Act Advances in Senate
A White House report argues against banning stablecoin yields, highlighting minimal benefits for bank lending and reduced consumer earnings. Key officials support the CLARITY Act, but the Senate Banking Committee's timeline remains uncertain, affecting the bill's chances before summer recess.
GateNews5h ago
Criticized for freezing too slowly: USDC freezes are taking too long! Circle CEO: We will definitely wait for a court order before freezing; we refuse to freeze it on our own
Circle CEO Jeremy Allaire said the company will not proactively freeze wallet addresses unless it receives a court order or law-enforcement requirement. Even amid allegations of hacker money laundering and community backlash, Circle continues to insist on operating under the rule of law.
Jeremy Allaire sets Circle’s law-enforcement bottom line
-----------------------------
As the global cryptocurrency market surges with uncertainty, Circle’s CEO Jeremy Allaire, at a press conference in Seoul, South Korea, made a clear stance on the market’s most sensitive issue of “asset freezes.” He noted that while Circle has technical means to freeze specific wallet addresses, unless it receives a court order or an official directive from law-enforcement agencies, the company will not
CryptoCity6h ago
Can bypass FSC regulations on using credit cards to buy crypto? OdinTing introduces the Wallet Pro service for buying crypto with a U.S. debit card
The OwlPay and Wallet Pro services launched by OdinTin use stablecoin technology to enable B2B cross-border payments, and—by partnering with major international payment players—showcase its ambitions for expansion in the fintech sector. By operating from overseas, OdinTin bypasses Taiwan’s regulatory restrictions, providing fast virtual-asset trading. Meanwhile, as it faces the newly promulgated Virtual Asset Services Act, it is set to become a reference template for other foreign-invested companies entering the Taiwan market.
CryptoCity7h ago
CLARITY Act Dropped From Senate Schedule; Crypto Bill Faces May Deadline to Avoid 2030 Delay
Senate Banking Committee Chair Tim Scott has delayed advancing the CLARITY Act due to unresolved issues, including stablecoin disputes and DeFi provisions. With a critical May deadline approaching, the bill's future remains uncertain amid political challenges.
GateNews8h ago
