A key sticking point in U.S. crypto legislation—whether stablecoins should be allowed to offer yield or user rewards—has escalated into an open policy standoff, according to CoinDesk. After Wall Street banking groups circulated a paper arguing for a blanket prohibition on stablecoin yield, the crypto industry’s Digital Chamber responded with its own set of principles defending limited, activity-based rewards.

The argument centers on how closely stablecoin rewards resemble traditional bank deposits. Bankers say any yield threatens the deposit base that supports lending and the broader banking system. The Digital Chamber says it is willing to concede ground on rewards that look like ‘interest’ for passive, idle holdings, but wants to preserve rewards tied to usage—such as liquidity provision and ecosystem participation, which are especially relevant for DeFi.

CoinDesk reports the debate is entangled with the Senate Banking Committee’s draft of the Digital Asset Market Clarity Act, while the GENIUS Act already governs parts of stablecoin activity. The White House has reportedly urged compromise by the end of the month, but repeated meetings have shown limited movement so far.

Why this matters for markets and DeFi:

- Stablecoin economics: rewards can influence adoption, velocity and where liquidity concentrates.

- Competitive landscape: prohibitions could advantage certain incumbents and constrain new payment rails.

- Legislative risk: unresolved disputes can delay broader market-structure clarity that many firms want.

With Democrats’ support likely needed for any final Senate passage, the stablecoin yield question is becoming a flashpoint that could determine whether the broader bill advances this spring—or stalls again.

Source: CoinDesk — https://www.coindesk.com/policy/2026/02/13/crypto-group-counters-wall-street-bankers-with-its-own-stablecoin-principles-for-bill