Stablecoin reward fight intensifies as White House rebuts banks

Eight U.S. banking groups are urging the Senate to tighten the CLARITY Act's stablecoin reward restrictions, arguing the latest language still leaves room for interest-like payments. The push keeps alive the banks-versus-crypto dispute over whether issuers can reward stablecoin holders with yield ahead of the market-structure bill's key procedural vote.

The White House has pushed back, publishing an analysis showing banning stablecoin rewards would raise bank lending by just 0.02%, with 76% of any gain going to large banks — not the community banks the banking lobby says it is protecting. The rebuttal sharpens the standoff as negotiators weigh the provision against the CLARITY Act's need for 60 votes to advance.