Yesterday there was a meeting at the White House to reach a compromise on a key issue holding up the Clarity Act crypto bill in the Senate: stablecoin interest and rewards. Community and other banks have concerns that permitting stablecoin rewards could impact deposits. The President’s Council of Advisors for Digital Assets convened a meeting between bank representatives and crypto firms, but the issue was not resolved at yesterday’s meeting.
Despite failing to reach a resolution, Patrick Witt, Executive Director of the President’s Council said on X, “The discussion was constructive, fact-based, and, most importantly, solutions-oriented. Over the course of the past few months, we have achieved breakthroughs on several seemingly intractable policy issues. I am confident we will be able to resolve this one too.”
The challenge centers on provisions in existing and proposed legislation. The GENIUS Act for stablecoins specified that issuers cannot pay interest, but left the door open for others to do so, including potentially the subsidiary of an issuer. For example, stablecoin issuer Anchorage Digital has adopted that subsidiary approach for ‘rewards’. A clause in the Senate Clarity Act bill effectively banned most third party interest and rewards. Crypto exchange Coinbase withdrew support for the Act for four reasons, with rewards a major one. In Q3 2025, Coinbase’s net revenues from stablecoins were $243 million, representing 56% of Coinbase’s net income. These revenues include a profit sharing deal with stablecoin issuer Circle, given Coinbase was the co-founder of the USDC stablecoin via the Centre consortium.
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