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Clarity Act Talks Advance as Senators Weigh Bank Language on Stablecoin Rewards

Key senators are reviewing bank-proposed limits on stablecoin rewards.

Overview

  • Senate negotiators are working toward an April 3 push, with a Banking Committee markup under consideration before the end of March.
  • Bank trade groups have circulated their final proposal on stablecoin rewards, and senators Thom Tillis and Angela Alsobrooks are reviewing it.
  • The unresolved fight centers on whether passive yield on idle stablecoins is barred while narrowly defined, activity-based rewards are allowed, with banks warning of deposit flight and crypto firms seeking regulated options.
  • JPMorgan CEO Jamie Dimon signaled support for limited, activity-linked rewards and said crypto firms operating like banks should face equivalent oversight.
  • President Trump is pressing for quick passage, and former CFTC chair Chris Giancarlo says regulators could move to write their own rules if Congress stalls.