US Congress Faces Deadline for Crypto Regulation Bill

The US Congress is facing a tight deadline to pass the CLARITY Act, which aims to set broader rules for crypto markets. The bill has stalled due to disagreements between banks and crypto firms over stablecoin rewards.

Banks are pushing for stricter regulations on stablecoins, arguing that allowing rewards would encourage deposit migration away from traditional banking systems. They also claim that this could lead to a loss of $500 billion in deposits by 2028.

Crypto firms, however, argue that incentives tied to payments and network activity would help digital dollars compete with older payment rails and widen their role in mainstream finance.