US senators are moving closer to rewriting how stablecoin rewards function, with a newly released bipartisan draft of the Digital Asset Market Clarity Act (CLARITY Act) that prohibits platforms from paying interest or yield solely for holding idle stablecoin balances.
The news emerged on January 13, 2026, ahead of a scheduled Senate Banking Committee markup, as USDC and USDT trading volumes remained resilient amid ongoing regulatory discussions.
This fight sits within a bigger push to give crypto clear rules after years of grey zones. But for some, this new rule feels more like a concession to banks rather than an improvement in stablecoin regulations.
Congress already gave the banks a gift in the GENIUS Act by prohibiting yield-bearing stablecoins.
There was no good policy reason for it to begin with, and it killed a whole class of innovative crypto products.
Now the banks want to mess up market structure with more? No way. https://t.co/4yKgyAGwTF
— Jake Chervinsky (@jchervinsky) January 7, 2026
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No More Staking Rewards? Why Is Congress Stepping In
Stablecoins like USDC (issued by Circle) and USDT (issued by Tether) function as crypto equivalents of the US dollar, widely used for trading, payments, and as a bridge in decentralised finance (DeFi). Many centralised platforms (e.g., exchanges) have offered rewards or yield on these holdings, resembling bank interest, to attract and retain users.
The new draft of the Digital Asset Market Clarity Act says platforms cannot pay yield just for parking stablecoins. Rewards stay allowed only when users do something active, like providing liquidity or helping run a network.
This builds on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed into law in July 2025, which created the first federal framework for payment stablecoins but left some loopholes regarding intermediary rewards, prompting banks to push for tighter restrictions in the CLARITY Act
Think of it like this. Congress allows earning money for “doing a job” in crypto, but not for letting dollars sit on the couch. But this new rule might disappoint users.
Exchanges like Coinbase already warned lawmakers they may pull support if reward rules go too far. Banking groups argue these programs look like unregulated deposits, while crypto firms say banks want less competition.
That tug-of-war explains the compromise.
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Stablecoin Rewards Shift From “Savings” to “Participation”
So does this bill kill staking rewards? Not exactly. Users can still earn by providing liquidity, helping governance, or staking in supported systems.
That sounds technical, but here’s the simple version. Instead of earning by waiting, you earn by helping the system work. This mirrors how crypto market structure bills aim to separate investing from banking.
Long term, this pushes stablecoins away from being savings accounts and closer to digital cash with optional work-based rewards.
Some experts also warn that the bill may stall. Midterm elections and disagreements over ethics rules have already slowed progress. Delays could push final rules into 2027.
For now, expect stablecoin rewards to look more like “earn by doing” than “earn by holding.”
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