"Clash over stablecoin rewards… a critical juncture for passage of the U.S. digital-asset market structure bill"

An analysis says the legislative window for a bill to regulate the structure of the U.S. digital-asset (crypto) market is rapidly narrowing. The key sticking point is a clash between banks and the crypto industry over stablecoin rewards, with warnings that if the issue is not resolved, legislation could be delayed or derailed.

According to crypto news outlet The Block on the 12th, global investment bank Bernstein said in a report that "the opportunity to pass the U.S. digital-asset market structure bill is 'right now,'" adding that "if the conflict over stablecoin rewards is not resolved, the entire legislative process could be thrown off course."

Bernstein said the bill’s fate hinges less on technical issues such as whether tokens should be classified as securities or how to regulate decentralized finance (DeFi), and more on conflicts of interest over paying rewards on stablecoin reserves. Banks are concerned that a structure in which crypto exchanges offer rewards of about 2–4% per year on stablecoin deposits could trigger deposit outflows.

The bill, titled the "Digital Asset Market Clarity Act of 2026," would split oversight authority for digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and classify many tokens as digital commodities rather than securities. It would also establish a CFTC regulatory framework for digital commodity exchanges, exempt crypto platforms from the requirement to register as securities exchanges, and apply only anti-fraud provisions to decentralized protocols.

The bill passed the House in July last year, and a final version is now being coordinated in the Senate. Markup procedures on provisions under their respective jurisdictions are expected to proceed this week in the Senate Banking Committee and the Agriculture Committee, and the administration is aiming for final passage within the first quarter.

Bernstein pointed to the stablecoin rewards issue as the biggest obstacle. The stablecoin regulatory law known as the "GENIUS Act," signed by President Trump last year, barred issuers from paying interest directly, but did not clearly block structures in which exchanges or affiliates distribute rewards. Banks have raised this as a problem, while the crypto industry argues that reopening the issue would undermine a legislative compromise that has already been reached.

Bernstein said "both sides view the issue as a non-negotiable red line," adding that "if the bill fails to make progress before the second quarter, it could be crowded out by the midterm election cycle and lose momentum."

Such tensions have also surfaced in signs of a possible shift in Coinbase’s stance. Bloomberg reported that Coinbase has internally indicated it may reconsider its support for the market structure bill if the Senate version includes limits on stablecoin rewards. Coinbase argues that platform-based rewards are central to its competitiveness and that restricting them could put it at a disadvantage in global competition.

The outlet reported that "while Bernstein assessed that the Trump administration’s pro-crypto stance is providing a favorable environment for the industry, it warned that if the stablecoin rewards dispute drags on, the push for the bill could fall into a stalemate."