Banks and Crypto Firms Clash Over US CLARITY Act and Stablecoin Rewards
US lawmakers are deadlocked over the CLARITY Act, a high-profile bill to regulate a potential US digital dollar. The central dispute pits traditional banks against crypto firms over whether yields or rewards tied to stablecoins should be legally classified as deposit-like products. Banks warn stablecoin rewards could undermine traditional deposit models; crypto companies call them innovation that benefits consumers. A White House meeting on Feb. 9 with senior banking executives raised hopes for progress, but no legislative breakthrough or agreed draft has emerged. Key provisions—such as Article 404—seek to define how stablecoin rewards are treated; Senate Banking Committee leadership and Senate Agriculture staff are working behind the scenes to harmonize language across bills. The White House is mediating, aiming to balance financial stability and competition, but a formal debate date and final consensus remain uncertain. Traders should monitor developments on the CLARITY Act, stablecoin yield rules, and the legislative calendar because any outcome could affect stablecoin adoption, banking liquidity dynamics, and crypto market sentiment.
Neutral
The news is categorized as neutral because it describes a policy dispute and stalled negotiations rather than an immediate market-moving event. Regulatory uncertainty typically produces mixed effects: short-term volatility as traders price in possible outcomes, but no direct positive or negative catalyst until concrete rules are passed. If lawmakers restrict stablecoin yields (treating them like deposits), banks could benefit and certain crypto yield products could be constrained—bearish for yield-focused tokens and stablecoin demand. Conversely, rules that legitimize stablecoin rewards could boost adoption and be bullish for crypto markets. Historically, prolonged regulatory uncertainty (e.g., past stablecoin and custody debates) led to increased volatility and rangebound price action rather than a clear directional trend. Therefore, until a draft is published or a vote is scheduled, the market impact is expected to be neutral overall; traders should watch legislative milestones, statements from key lawmakers and the White House, and any interim guidance that could produce short-term bullish or bearish moves.