Stablecoin Rewards Regulations Stalled as Banks Continue to Oppose Deposit Shift

The U.S. Clarifying Act, a digital asset market structure bill, failed to clear the Senate, meaning stablecoin reward services are expected to continue for the foreseeable future. However, separate regulations set to take effect in 2027 mean long-term viability remains uncertain. Stablecoin rewards refer to services that pay users a return for holding dollar-pegged digital assets, which resemble bank deposit interest but differ in actual funding and payment structure.