Bernstein says window for crypto market structure bill is ‘here and now,’ as concerns over stablecoin rewards remain key sticking point

Bernstein analysts suggest the opportunity to pass a comprehensive U.S. crypto market structure bill, like the Clarity Act, is rapidly diminishing. The primary obstacle is not technical classification issues but a dispute between banking groups and the crypto industry over whether crypto platforms should be allowed to offer rewards on stablecoin balances.

The Clarity Act, which previously passed the House, aims to define regulatory oversight between the SEC and CFTC, classifying most tokens as commodities. While a previous law barred stablecoin issuers from paying yield directly, crypto platforms still offer users annual rewards, which banks view as a threat to traditional deposits as the stablecoin market grows.

Both sides consider the rewards issue a 'red line,' risking the bill's failure if a compromise isn't reached soon, ideally before the second quarter of 2026 to avoid midterm election interference. The tension is underscored by reports that Coinbase might withdraw support if broader limits on stablecoin rewards are imposed, arguing such limits harm competition.

(Source：The Block)