Crypto Legislation Faces Stalemate Over Stablecoin Rewards and Banking Concerns

Negotiations over the U.S. Clarity Act, a key cryptocurrency regulation bill, have stalled after banks rejected a White House-brokered compromise addressing stablecoin rewards. The bill aims to clarify crypto rules and promote adoption but faces opposition due to concerns that yield-bearing crypto products could divert bank deposits. President Donald Trump criticized banks for undermining the bill, emphasizing his administration's focus on crypto reform. Crypto firms argue that offering rewards is essential for competitiveness, while banks warn of significant deposit outflows.