Senators Negotiate Stablecoin Rewards to Revive Digital Asset Legislation

U.S. senators are working on a compromise regarding stablecoin customer rewards to advance the stalled Digital Asset Market Clarity Act. According to NS3.AI, banks have previously blocked the act due to concerns that these rewards resemble deposit interest. The proposed draft aims to limit which stablecoin activities can earn platform-paid rewards, balancing the prevention of deposit flight from banks with the support of digital-asset innovation. Even if an agreement is reached, the bill must pass committee markup, be integrated with an existing Senate Agriculture version, and address Democratic concerns about decentralized finance (DeFi), ethics, and regulatory appointments before it can be presented to the full Senate.