Banking Groups Push Last-Minute Changes to Stablecoin Yield Rules

A major debate over stablecoin regulations is unfolding in the United States as banking organizations seek last-minute changes to a compromise tied to a major digital asset bill. The discussion comes just days before the Senate Banking Committee is expected to review the proposed legislation on May 14.

Several banking groups, including large financial trade associations, are reportedly asking lawmakers to revise rules around stablecoin rewards. Earlier negotiations had created a middle ground solution allowing crypto firms to offer rewards linked to platform activity and transactions, while banning passive yield that resembles traditional bank interest.

Why Banks Are Concerned About Stablecoin Rewards

Banking institutions argue that reward-based stablecoins could weaken traditional lending by moving customer funds away from banks. Industry groups claim reduced deposits may limit loans for consumers and businesses.

Supporters of the bill, however, believe clearer digital asset regulations are necessary for innovation and market certainty. Political leaders backing the legislation say delaying the proposal could risk restarting months of negotiations.

Senate Decision Could Shape Crypto Regulation

The upcoming committee vote may determine whether stablecoin legislation moves forward or faces new delays amid growing pressure from both banking and crypto sectors.