U.S. Senate to Release Stablecoin Reward Proposal Next Week

The U.S. Senate is expected to release detailed information next week on stablecoin-related rewards. However, with industry pushback continuing, further coordination appears inevitable.

According to Eleanor Terrett, host of Crypto in America, on the 27th (local time), the office of Republican Sen. Thom Tillis plans to publish legislative text next week outlining a stablecoin rewards framework. Discussions are also ongoing with stakeholders including banks and the digital-asset industry.

The move follows complaints raised about a draft that had previously been shared with some industry participants. Major crypto companies such as Coinbase are said to have voiced concerns that the proposal could excessively restrict reward structures.

David Duong, head of investment research at Coinbase, said that “some adjustments are needed to protect customers and maintain sustainable rewards programs,” adding that the industry is preparing a coordinated response.

At the center of the talks is how far rewards for holding stablecoins should be allowed. Banks are calling for tough regulation, citing concerns over deposit outflows, while the crypto industry argues that allowing rewards at a certain level is necessary to preserve user benefits and service competitiveness. The stablecoin rewards issue is one of the key points of contention in the Clarity Act and is seen as a major variable that could shape the final direction of legislation.