Stablecoin Rewards Debate Intensifies as GENIUS Act Faces Challenges

The crypto market structure bill, known as the CLARITY Act, is under discussion with significant focus on the GENIUS Act's stablecoin rewards provisions. Key points include:

Faryar Shirzad of Coinbase highlighted debates around stablecoin rewards, emphasizing their importance for consumers without harming community banks.
U.S. banks earn approximately $360 billion annually from payments and deposits, largely due to holding reserves incentivized by the Federal Reserve.
Stablecoin rewards introduce competition in payment systems, challenging traditional bank profits.
China has started offering interest on the Digital Yuan, potentially undermining U.S. dollar dominance if Senate bans stablecoin rewards.
John E. Deaton criticized the American Bankers Association (ABA) for pressuring the Senate to limit companies like Coinbase and Kraken from offering rewards.
Deaton argued that banning yield offerings favors China's currency over the U.S. dollar, threatening consumer benefits.
Banking officials, including Jamie Dimon, are accused of crafting anti-crypto legislation detrimental to average Americans.

GENIUS Act

The discussions underscore a struggle between maintaining traditional banking revenues and adapting to emerging digital payment technologies.