Stablecoin Rewards Remain the Main Sticking Point
As lawmakers return to Washington D.C. next week (week of April 13, 2026), negotiations over the crypto market structure bill are entering a decisive phase. The Senate Banking Committee plans to hold a hearing and vote on the bill before the end of April, according to sources familiar with the discussions.
The primary obstacle continues to be the treatment of stablecoin rewards (yields paid to holders). The GENIUS stablecoin law passed in July 2025 already prohibits stablecoin issuers from paying interest directly. However, it leaves room for third-party platforms (such as Coinbase) to offer rewards. Banking industry advocates worry that such yields could pull deposits away from traditional banks, especially community banks, potentially affecting lending and economic growth. Crypto firms argue that overly restrictive rules would stifle innovation and hurt U.S. competitiveness.
A recent White House economists’ report concluded that stablecoin rewards are unlikely to meaningfully impact bank lending or broader credit conditions. Banking sources have pushed back, stating the report did not adequately measure the potential negative effects on deposits and lending. On Friday, one banking source told The Block that they are still offering solutions to tighten the yield prohibition language.
White House and Senate Push for Compromise
Treasury Secretary Scott Bessent published an op-ed in The Wall Street Journal on Wednesday urging swift passage of the bill, emphasizing that “Senate floor time is scarce, and now is the time to act.”
A separate source close to the talks said the current focus is on “getting the banks in line to support the compromise,” adding that “crypto is nearly there.”
Once the stablecoin rewards issue is resolved, attention will shift to other remaining points, including protections for software developers. Disagreements between crypto advocates and law enforcement on this issue are emerging, with Patrick Witt, President Trump’s top crypto adviser, stressing that “protecting software developers is one of the most important aspects of this bill” and warning that “criminalizing code does nothing but drive innovation offshore.”
Path Forward and Timeline
If the bill advances out of the Senate Banking Committee, it must still be reconciled with the version from the Senate Agriculture Committee before a full Senate floor vote (requiring 60 votes and therefore Democratic support). It would then need to be reconciled with the House version (the CLARITY Act), which passed the full House last year.
Senator Cynthia Lummis, a key crypto advocate, has signaled urgency, stating on X that “this is our last chance to pass the Clarity Act until at least 2030” and warning that the U.S. cannot “surrender America’s financial future.”
Bottom Line
Negotiations are intensifying with all parties — White House, Treasury, lawmakers, banks, and crypto industry — actively involved. A compromise on stablecoin rewards appears close, but the coming weeks will determine whether the broader market structure bill can finally move forward in 2026.
The legislation would provide much-needed clarity on jurisdiction between the SEC and CFTC, rules for exchanges, disclosures, and stablecoin regulation — issues the industry has waited years to resolve.
