U.S. Crypto Market Structure Bill Nears Stablecoin Rewards Breakthrough as Illicit Finance and Ethics Concerns Resurface

Gate News message, April 23 — Negotiations on a broader U.S. cryptocurrency market-structure bill, known as the Clarity Act, are in a “good spot” on stablecoin rewards, according to key negotiators Senators Angela Alsobrooks (D-Md.) and Thom Tillis (R-N.C.), even as other contentious issues including illicit finance and ethics concerns are set to take center stage.

The Clarity Act would clarify regulatory jurisdiction between the Commodity Futures Trading Commission and the Securities and Exchange Commission, define when digital assets qualify as securities or commodities, and establish new disclosure requirements. Stablecoin rewards have emerged as a main sticking point: while last year’s GENIUS Act bars stablecoin issuers from paying interest directly to holders, it does not prevent platforms from providing rewards. Banking industry representatives oppose this provision, arguing that allowing such returns could draw deposits away from traditional banks and weaken community institutions, while crypto firms contend that restricting rewards would stifle innovation. According to a source familiar with the matter, the compromise on stablecoin yield—reached after three months of hard negotiations—would prohibit yield paid passively or in ways that mimic bank deposit interest, while protecting “bona fide rewards and crypto-native technologies that incentivize stablecoin adoption.”

As negotiators near agreement on yield, attention is shifting to illicit finance concerns. Some senators have raised concerns that the Blockchain Regulatory Certainty Act, which would clarify that non-custodial developers are not money transmitters, could weaken prosecutors’ ability to pursue financial crimes. Ethics have also become a point of contention: Bloomberg estimated that President Trump has generated approximately $1.4 billion from crypto ventures including DeFi and stablecoin project World Liberty Financial, and the Trump family holds a 20% stake in mining firm American Bitcoin. Additionally, Trump is set to host an Official Trump memecoin gala luncheon at Mar-a-Lago on Saturday; Senators Elizabeth Warren, Adam Schiff, and Richard Blumenthal have raised concerns and sent a letter questioning the event.

Senate Banking Committee leadership is preparing for a markup hearing on the bill. Sen. Thom Tillis indicated this week that the committee is unlikely to hold a markup in April, despite pressure from Sen. Cynthia Lummis. In March, Sen. Bernie Moreno stated that if crypto legislation is not passed in May, it will not advance in the “foreseeable future.”