Di fight for stablecoin rewards dey hot up before May 14 CLARITY Act markup

Before the U.S. Senate Banking Committee mark-up on May 14, the American Bankers Association and other bank trade groups dey push to tighten rules on stablecoin rewards under the Digital Asset Market CLARITY Act of 2025. ABA boss Rob Nichols tell bank chiefs to contact senators, saying say if dem allow “interest-like rewards” on stablecoins e fit cause “deposit flight” from banks to crypto and damage financial stability. The Senate bill wan create federal framework wey split oversight between SEC and CFTC. One May 2 compromise go ban “covered parties” from paying yield-like returns just for holding stablecoins, but e go allow rewards wey link to real user activity or transactions. Banks still dey ask for technical edits and warn say the wording fit still get loopholes (for example, fixed monthly payments wey scale with account balances). Market context still dey constructive: crypto investment products record $857.9M weekly inflows for sixth week straight, Bitcoin don pass $80,000, and total AUM hit $160B, driven by U.S. inflows. Traders suppose watch whether stablecoin rewards provisions go pass as-is or dem go narrow am further, because this fit quickly change risk appetite and stablecoin-related liquidity flows. Key takeaway for traders: stablecoin rewards wording na near-term policy catalyst — monitor the May 14 outcome for possible volatility around BTC sentiment and flows.