The post US stablecoin holders appear set to lose passive ‘rewards’ appeared on BitcoinEthereumNews.com.

Homepage > News > Business > US stablecoin holders appear set to lose passive ‘rewards’ U.S. stablecoin holders are almost certain to lose their ability to claim ‘rewards’ for passively holding the tokens, while a leading infrastructure provider claims stablecoin payments will require blockchains with seriously scalable bandwidth. March 1 was the White House’s self-imposed deadline for resolving the stablecoin ‘yield v reward’ debate between the banking sector and crypto platforms like the Coinbase (NASDAQ: COIN) exchange. The issue is considered one of the main sticking points preventing the advancement of the Senate Banking Committee’s digital asset market structure legislation (the CLARITY Act). (So you know: banks fear customers will withdraw deposits to chase higher interest via crypto platforms’ stablecoin ‘rewards.’ The banks want these platforms to be subject to the same ‘yield’-paying prohibitions applied to stablecoin issuers in the GENIUS Act. The platforms claim that banks’ fears are unjustified and banks just don’t want to compete to keep those customers.) With the most recent White House-moderated meeting (the third) between these squabbling stakeholders failing to achieve a mutually acceptable compromise, Decrypt’s Sander Lutz tweeted on February 27 that a banking source had told him the two sides were still miles apart. Lutz’s source said chances of CLARITY advancing in March “could drop to near-zero.” Lutz’s source also said, “There’s a very real likelihood that this thing falls apart unless [Coinbase CEO] Brian Armstrong comes to the table.” Armstrong’s abrupt withdrawal of support for CLARITY in January was based on his view that a rewards ban—which would impact one-fifth of Coinbase’s revenue—was a dealbreaker. Pushback on Lutz’s tweets was immediate, with White House crypto advisor Patrick Witt, who has overseen the stakeholder negotiations, mockingly calling the banks’ (alleged) position a “bold strategy. Let’s see if it pays off for them.”…

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Filed under: News - @ March 3, 2026 12:28 pm