Crypto Pushes Back Against Banks’ Yield Ban in CLARITY Act
The post Crypto Pushes Back Against Banks’ Yield Ban in CLARITY Act appeared on BitcoinEthereumNews.com.
A dispute between crypto stakeholders and traditional banks has reemerged as lawmakers in the Senate review the proposed CLARITY Act. At the core of the debate is a provision that banking industry members want added, which would ban rewards or yields on stablecoins offered through crypto platforms. The debate follows the earlier passage of the GENIUS Act, which was signed into law in July and addressed multiple aspects of digital asset regulation. That law included terms restricting stablecoins from channeling bank deposit interest. However, banks now argue the restriction should extend directly to exchanges, an idea that crypto advocates say invalidates what Congress already settled. Lobby For The Yield Ban In The CLARITY Act In an X post, Coinbase CEO Brian Armstrong revealed that large banks are lobbying to overturn provisions that protect consumers’ ability to earn yield on digital assets, such as USDC. He stated that attempts to revisit restrictions on stablecoin rewards contradict the legislative intent of the GENIUS Act. I’ve never been more bullish about clear rules for crypto. It’s obvious that market structure is a freight train that’s left the station. But that hasn’t stopped the big banks from coming for another handout – this time paid by your crypto rewards. They want to undo your right… pic.twitter.com/hmPYmagDhj — Brian Armstrong (@brian_armstrong) September 29, 2025 Furthermore, the Coinbase CEO described the market structure legislation currently in the Senate as a major next step, noting that it already has bipartisan support in the House. Armstrong warned that including yield prohibitions would amount to bailing out banks with record profits at the expense of consumers. He stressed that tens of millions of Americans have used crypto and view rewards as part of the value proposition. His comments framed the push as a test of whether lawmakers would uphold…
Filed under: News - @ September 29, 2025 7:26 pm