The battle for stablecoin yields intensifies, and the US crypto market restructuring faces new obstacles

January 21 News, the political battle over stablecoin yields is heating up rapidly and may slow down the progress of structural reforms in the U.S. cryptocurrency market. Disagreements between banks, crypto companies, and policymakers on the core issue of “who can benefit from the next round of financial regulation” have deepened, causing key legislation such as the CLARITY Act to become bogged down in a tug-of-war.

Galaxy CEO Mike Novogratz pointed out that banking lobbying groups are trying to prevent crypto platforms from offering stablecoin rewards to users, even though such practices are already permitted under some current laws. He emphasized in his comments that the GENIUS Act has created legal space for certain stablecoin yields, but banks are more concerned about deposit diversion than consumer protection. If the market structure bill fails, the true victims will be American retail users and innovative financial enterprises.

Actions from Washington confirm this judgment. Influenced by banking groups, the Senate Banking Committee has slowed its review of the CLARITY Act. Over 3,200 banking professionals have called to close what they call the “interest payment loophole,” arguing that stablecoin rewards could weaken community banks’ lending capacity. However, critics point out that banks can still pay interest on deposits, while crypto platforms can only offer limited yields through staking or liquidity provision, and this regulatory disparity distorts market competition.

The rift between the White House and the crypto industry is also widening. Reporter Brendan Pedersen revealed that the government remains dissatisfied with the US’s first compliant CEX, despite Brian Armstrong stating that communication is ongoing. Patrick Witt, Executive Director of the President’s Digital Asset Advisory Committee, warned against missing legislative windows in pursuit of perfection, noting that establishing a framework during a pro-crypto administration is much more realistic than facing stricter versions in the future.

The legal community has also issued warnings. Consensys lawyer Bill Hughes believes that even without a financial crisis, punitive regulation could quietly emerge, with some key provisions potentially “hidden” in bills that must pass.

As issues such as stablecoin yields, the boundaries between DeFi and traditional finance, and the classification of major crypto assets remain unresolved, the U.S. cryptocurrency market structure reform continues to be constrained by political struggles. This tug-of-war over stablecoins and banking interests is reshaping the future path of digital asset regulation in the United States.