US lawmakers have again delayed passage of the CLARITY Act after a public fight broke out over who should control stablecoin rewards, according to industry sources. Cryptocurrency prices have remained calm, but behind the scenes, digital dollar rewards have become the main pressure point for exchanges and banks.
The bigger issue is how Washington wants cryptocurrencies to function in everyday life, whether they should behave more like money in a savings account or just another piece of software.
For regular users, this debate hits close to home, as stablecoins are the closest thing to crypto and digital money. If the rules change, the low yield people earn from holding these dollars online could decline or move to platforms outside the United States. Some companies are already preparing for this eventuality.
It also helps explain why big business is now pushing back against bills they once supported. Regulation ceased to be theoretical and began to strike real balances.
What is the CLARITY Act and why rewards are the problem
The CLARITY Act aims to decide who regulates cryptography in the United States. You can think of it as a rulebook that decides which referee will direct the game. We have a full explainer on the CLARITY bill if you want to dig deeper.
53 banking associations have just drafted a $6.6 trillion protection bill themselves.
They called it the CLARITY Act.
Here’s what they don’t want you to understand.
Banks pay depositors 0.1% interest. Stablecoin issuers hold Treasury bills yielding 4.5%. If stablecoins could pass… pic.twitter.com/sqDeduoVPa
—Shanaka Anslem Perera
(@shanaka86) January 15, 2026
(@shanaka86) The fight comes down to the rewards paid on stablecoins. A stablecoin is a digital token designed to remain close to a dollar, like USDC or USDT. Rewards are the small returns that platforms pay to users, similar to interest, often generated by income from government bonds or loans.
Some lawmakers want to limit these rewards when they come simply from holding stablecoins. Supporters say it protects users. Critics say it gives more control to banks.
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Who wins and who loses if rewards are removed
Exchanges like Coinbase claim that rewards are the reason people keep their dollars in crypto apps rather than traditional banks. Coinbase reported around $1.3 billion in stablecoin rewards revenue in 2025, which is why it withdrew its support for the bill.
After reviewing the Senate Banking Bill over the past 48 hours, Coinbase unfortunately cannot support the bill as written.
There are too many problems, including:
– A de facto ban on tokenized actions
– DeFi bans, giving the government unlimited access to your finances…–Brian Armstrong (@brian_armstrong) January 14, 2026
Banks see things differently. They argue that the stablecoin rewards funds siphoned into regular accounts that pay little or no interest. This concern has already caused regulators to tighten parts of the bill, according to a report from Stablecoin Insider.
For users, the risk is simple. If U.S. platforms can’t offer rewards, activity could shift overseas or to a smaller number of companies. When competition decreases, prices generally get worse.
Why App Makers Get Nervous
Many crypto applications run on open source software rather than being owned by a single company. You can imagine it like a vending machine that runs on its own, where no manager stands behind the glass to decide who can use it.
The CLARITY Act attempts to separate the people who create software from the companies that hold customers’ money. Manufacturers support this line. If this becomes unclear, some might stop offering their tools to US users.
This could reduce the volume of digital dollars passing through these systems, slowing down lending and trading activities.
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The safety argument used by regulators
Regulators often point to past failures like Celsius and BlockFi. These platforms promised rewards without clearly explaining where the money came from. When markets turned, users lost access to their funds.
Lawmakers are trying to protect users without creating a system that only big companies can afford to follow.
Expect tougher language and more intense lobbying before the next vote. Until then, treat stable rewards as risky income and avoid parking money you need for rent or groceries just to earn a little extra.
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The article CLARITY Act Sparks Fight for Stable Coin Yield and Your Dollars appeared first on 99Bitcoins.
