A dispute over **stablecoin yield and rewards** has become a central obstacle in U.S. crypto market-structure negotiations, with crypto advocates and traditional banks staking out sharply different positions.

### What happened

- CoinDesk reported that after Wall Street banks circulated a document urging a **total prohibition on stablecoin yield**, the **Digital Chamber** published its own set of principles.

- The group argues some reward mechanisms should remain allowed — particularly those linked to **liquidity provision** and **ecosystem participation**, including in DeFi contexts.

- The debate is tied to the Senate’s **Digital Asset Market Clarity Act** discussions, even though stablecoins were addressed in separate legislation.

### The competing arguments

**Banking industry concern:** stablecoin yield could compete with traditional deposits and savings products.

**Crypto industry stance:** a blanket ban is too broad; activity-based rewards may be materially different from “interest on idle holdings.” The Digital Chamber signals willingness to concede on yield that mimics a savings account — but wants room for other reward types.

### Why it matters

Stablecoins sit at the core of crypto market plumbing, and the treatment of yield could shape:

- How exchanges and apps design **onchain cash management**

- Whether users migrate toward non-U.S. platforms offering rewards

- The pace of U.S. legislative progress on market structure more broadly

### What to watch next

- Whether another White House-facilitated meeting happens soon and produces a compromise.

- Possible “scalpel” language targeting “idle yield” rather than broader rewards.

- How regulators interpret staking, rewards, and incentive programs across stablecoin issuers and intermediaries.

_Source: CoinDesk_