Crypto world faces growing pressure to relent on stablecoin rewards to win bigger prize

The primary obstacle to passing the crypto sector's key goal, the Clarity Act legislation in Washington, centers on stablecoin rewards, a point the industry can control. Wall Street lobbyists argue that stablecoin yield is akin to bank interest, threatening bank lending, a stance that has stalled the Senate's Digital Asset Market Clarity Act. While the industry initially felt leverage from the existing GENIUS Act, a new proposed rule from the OCC suggests third-party rewards might violate the law's intent, shaking confidence. A potential compromise favored by White House advisors involved allowing rewards tied to transactions, not just holding stablecoins, but bankers remain firm on banning virtually all rewards. The industry faces a choice: sacrifice further on rewards to advance the Clarity Act, or hold out and risk the bill failing, potentially leaving regulation to agency rules (SEC/CFTC) without the foundation of new law, or relying on the restrictive interpretation of the GENIUS Act via the OCC's final rule. Furthermore, Democratic senators have outstanding demands regarding illicit finance defenses and official financial ties, complicating passage before the July recess, despite some industry optimism.

(Source：CoinDesk)