Why Banks Failed to Kill Stablecoin Rewards in the Clarity Act

Summary

Faryar Shirzad explains the compromise language in the Clarity Act regarding stablecoin rewards. The banks sought to restrict yield-like payments, but the final text allows rewards tied to customer activity. Coinbase views the outcome as workable, while the banking lobby continues to push back.

• The Clarity Act includes new restrictions on stablecoin rewards, requiring customer activity to qualify.
• Coinbase's policy chief considers the compromise workable and rewards are preserved.
• The American Bankers Association and other groups criticized the compromise as falling short.
• The bank lobby is fighting the president's own agenda on tokenized payments.
• 150 to 200 new stablecoin projects have launched since the Genius Act was signed.
• The rulemaking process will clarify what constitutes 'economically equivalent' to interest.