Crypto Bill Hit by New Setback Over Stablecoin Rewards Dispute

The Clarity Act, aimed at regulating digital assets, has faced yet another hurdle in its passage through Congress. The latest obstacle arises from the White House's proposed compromise on stablecoin rewards, which banks have refused to accept.

According to sources, Standard Chartered has warned that stablecoins could pull nearly $500 billion from U.S. bank deposits by 2028 if certain provisions are not implemented. This estimate has added fuel to the debate over the Clarity Act's provisions.

Banks have expressed concerns that allowing yield-bearing rewards on stablecoins would drive deposit flight from traditional lenders, further exacerbating the issue. Coinbase and other crypto companies have argued that such restrictions would be anticompetitive.