As the U.S. Senate Banking Committee prepares for a pivotal markup vote on crypto market structure legislation, the debate over stablecoin rewards has escalated into a defining battle. Banking groups warn these yield-like payments threaten local lending by drawing deposits away from community banks, while crypto industry leaders counter that they are essential for innovation, customer loyalty, and maintaining U.S. competitiveness against rivals like China. With lawmakers promising regulatory “parity,” the resolution of this issue could determine the fate of the landmark bill and shape the future of digital finance in America.
about Stablecoin Rewards Debate Heats Up Ahead of Crypto Bill VoteCrypto Council for Innovation
0 in Finance and 0 in Crypto last weekCrypto Champion Sen. Lummis Retires, Leaving Key Bills in Limbo
Senator Cynthia Lummis (R-WY), one of cryptocurrency’s most influential and reliable advocates on Capitol Hill, announced she will not seek reelection when her term ends in January 2027. Known as the ‘Bitcoin Senator,’ her departure marks a pivotal moment for the digital asset industry in the United States, raising significant questions about the fate of major pending legislation she has championed throughout her 18-year congressional career.
about Crypto Champion Sen. Lummis Retires, Leaving Key Bills in LimboUS Republicans Propose Crypto Regulatory Overhaul Bill
House Republicans have unveiled a comprehensive draft bill that would fundamentally reshape how digital assets are regulated in the United States. The proposal establishes clear jurisdictional lines between the CFTC and SEC based on whether crypto assets are decentralized or centralized. This legislative effort aims to provide regulatory clarity while maintaining consumer protections in the rapidly evolving crypto market.
about US Republicans Propose Crypto Regulatory Overhaul BillLummis Urges CFPB to Finalize Open Banking Rule for Crypto
U.S. Senator Cynthia Lummis is intensifying pressure on the Consumer Financial Protection Bureau to finalize its open banking rule, warning that major financial institutions are weaponizing their gatekeeping power to restrict American access to digital asset platforms. The rule, finalized in October 2024 but now under reconsideration, would enable consumers to securely share financial data with third-party applications through APIs—creating critical infrastructure for connecting traditional bank accounts to crypto exchanges. This regulatory battle pits pro-crypto lawmakers and fintech advocates against banking industry groups who immediately sued to block the rule, creating a legal standoff that could determine the future of financial innovation in the United States.
about Lummis Urges CFPB to Finalize Open Banking Rule for CryptoCrypto Groups Push CFPB for Strong Open Banking Rule
Leading crypto advocacy groups have joined forces with fintech organizations to pressure the Consumer Financial Protection Bureau for stronger consumer data protections. The coalition wants the CFPB to finalize rules ensuring consumers control their financial information. This push comes as the agency reviews data sharing regulations under the Dodd-Frank Act.
about Crypto Groups Push CFPB for Strong Open Banking RuleStablecoin Yield Battle: Banks vs Crypto Over $6.6T Risk
The implementation of the GENIUS Act has sparked a major conflict between traditional banks and the crypto industry over stablecoin yields. While the legislation prohibits stablecoin issuers from paying interest directly, it allows third parties like exchanges to offer yield on stablecoin holdings. Banking groups warn this loophole could trigger up to $6.6 trillion in deposit flight from the U.S. banking system, potentially undermining credit creation and increasing borrowing costs. Crypto industry advocates counter that yield is necessary for stablecoins to compete effectively and that prohibiting it would stifle innovation and put U.S. firms at a global disadvantage. Multiliquid CEO Will Beeson suggests the chance of near-term legislative changes is low due to Washington gridlock.
about Stablecoin Yield Battle: Banks vs Crypto Over $6.6T RiskUS Banks Lobby to Ban Stablecoin Yields Amid Deposit Fears
Major US banks are lobbying to reverse provisions in the GENIUS Act that prevent stablecoin issuers from paying interest while allowing crypto exchanges to offer yields on stablecoin holdings. Banking groups argue this creates an uneven playing field that could trigger $6.6 trillion in deposit outflows according to Treasury estimates, potentially raising borrowing costs and reducing credit availability. Crypto industry leaders counter that banks are engaging in ‘rent-seeking’ behavior to protect their low-interest deposit models, noting that traditional banks often pay near-zero interest while crypto platforms provide competitive yields. The conflict has escalated into a Washington lobbying war with banks seeking to block crypto yield offerings and crypto advocates defending the legislation as a carefully crafted compromise that promotes competition and consumer choice.
about US Banks Lobby to Ban Stablecoin Yields Amid Deposit FearsCrypto Groups Back Brian Quintenz for CFTC Chair
The Crypto Council for Innovation and Blockchain Association have jointly endorsed Brian Quintenz for CFTC Chairman, emphasizing his expertise in digital assets and financial markets. The groups argue his confirmation is crucial for advancing America’s digital asset agenda and implementing regulations that support innovation while maintaining market integrity. Simultaneously, these organizations are opposing banking industry efforts to amend the GENIUS Stablecoin Regulation Act, warning that proposed changes would create an uncompetitive environment favoring traditional banks over broader industry growth and consumer choice. The banking sector has expressed concerns about potential massive deposit outflows to digital assets if current regulatory gaps persist.
about Crypto Groups Back Brian Quintenz for CFTC ChairCrypto Execs Urge Trump to Block Bank Data Fees
A coalition of more than 80 crypto and fintech executives, including Gemini and Robinhood, has petitioned President Trump to stop banks from charging fees for customer data access. They argue these fees protect banks’ market dominance while stifling competition in crypto, AI, and digital payments. The letter claims such fees would limit consumer access to better financial products and hinder industry growth.
about Crypto Execs Urge Trump to Block Bank Data FeesCrypto Groups Challenge DOJ Over Money Transmission Laws
A coalition of crypto advocacy groups, including Paradigm, the DeFi Education Fund, and the Blockchain Association, has filed an amicus brief in support of a developer facing DOJ prosecution under money transmission laws. The groups contend that the DOJ is misapplying Section 1960 of title 18 of the US Code, originally designed for unlicensed money transmitters, to target open-source software developers. The case could have far-reaching implications for the DeFi ecosystem and the broader crypto industry, as it challenges the DOJ’s regulatory overreach. The outcome may influence how decentralized technologies are treated under existing financial laws.
about Crypto Groups Challenge DOJ Over Money Transmission LawsSenate Advances GENIUS Act for Stablecoin Regulation
The Senate voted 68-30 to invoke cloture on the GENIUS Act, paving the way for a final vote on stablecoin regulation. The bill, which requires stablecoins to be backed 1:1 by high-quality assets and imposes strict reserve and disclosure rules, saw bipartisan support after the Hagerty amendment eased objections. The amendment removed a proposed ban on in-kind redemptions and clarified supervisory roles for non-bank issuers. If passed, the bill could streamline federal oversight of stablecoins, with smaller issuers allowed under state regimes meeting federal standards. The crypto industry has praised the progress, urging continued momentum for clear federal rules.
about Senate Advances GENIUS Act for Stablecoin RegulationUS Digital Asset Market Clarity Act Advances with Bipartisan Support
The Digital Asset Market Clarity Act (H.R. 3633) has cleared the House Financial Services and Agriculture Committees with strong bipartisan votes, positioning it for full House consideration. The legislation seeks to resolve jurisdictional ambiguity by assigning digital asset oversight to either the SEC or CFTC based on new classifications like ‘digital commodity’ and ‘investment contract assets.’ A key provision defines ‘mature blockchain systems’ to determine regulatory transitions, while also safeguarding self-custody rights. Proponents, including industry groups, hail it as a step toward regulatory certainty, but critics like former CFTC Chair Timothy Massad warn it may create confusion and undermine securities laws. The bill now moves toward consolidation before a House floor vote.
about US Digital Asset Market Clarity Act Advances with Bipartisan Support