Whereas Congress pushes forward with the CLARITY Act, the unfinished battle over how the U.S. attracts the road between “crypto” and “securities” is spilling into public view, and into a well-recognized blame sport.
On-line, critics argue the invoice’s construction might hardwire benefits for regulated incumbents, with centralized platforms accused of quietly backing tweaks that might make it more durable for DeFi to compete on equal phrases.
CLARITY is being bought as a market-structure invoice, however probably the most consequential battle could also be over distribution.
Stablecoin rewards flip “holding {dollars}” right into a competing product class, and banks are combating to maintain that characteristic from changing into normalized exterior the deposit system. Platforms body it as a loyalty perk fairly than curiosity, whereas lawmakers search for language that preserves “digital money” whereas limiting “hold-to-earn” habits.
Banks are resisting retail stablecoin yield as a result of it competes with deposit pricing and the fee relationship that underpins client banking.
In line with the FDIC’s most up-to-date Month-to-month Fee Cap Data dated Dec. 15, 2025, the nationwide charges utilized in its rate-cap framework have been 0.39% for financial savings, 0.07% for curiosity checking, and 0.58% for cash market deposit accounts.
In the identical desk, the Treasury reference yield for these non-maturity merchandise was 3.89%.
That hole isn’t a direct proxy for financial institution revenue, but it surely quantifies how far retail deposit pricing can sit under authorities charges when buyer habits, bundled providers, and switching friction hold balances in place.
| FDIC class (Dec. 15, 2025) | Nationwide deposit price | Treasury reference yield | Hole |
|---|---|---|---|
| Financial savings | 0.39% | 3.89% | 3.50% |
| Curiosity checking | 0.07% | 3.89% | 3.82% |
| Cash market deposit account | 0.58% | 3.89% | 3.31% |
Stablecoin yields put stress on financial institution deposit charges, and expose the unfold
Stablecoin rewards compress that distance by giving retail customers another place to carry greenback balances with a return that may sit close to the brief finish of the curve.
The U.S. Treasury’s day by day yield curve collection reveals the three-month level at 3.88% on Nov. 28, 2025, inserting the market’s money benchmark near the FDIC desk’s 3.89% reference.
A stablecoin yield close to that vary modifications the retail query from “Which financial institution pays probably the most?” to “Why is my money return far under the federal government price?”
From a stability sheet perspective, the stress is forward-looking as a result of the choice level is marginal funding price, not legacy averages.
If deposits migrate out of checking and financial savings into stablecoin balances, banks can reply by elevating deposit charges or changing funding by means of wholesale channels.
Each paths increase curiosity expense, they usually can accomplish that rapidly.
In line with the Federal Reserve Financial institution of New York, the Secured In a single day Financing Fee is a broad measure of the price of borrowing money in a single day collateralized by Treasury securities, a benchmark that shapes repo and different short-term funding markets utilized by giant monetary companies.
When retail deposit outflows push banks to rely extra on market funding, the worth of that alternative can monitor coverage charges extra immediately than retail deposits have traditionally finished.
The retail distribution layer is the place banks see the most important strategic threat.
The hidden price of upper financial institution funding reliance: why deposit flight issues
In line with Coinbase’s USDC Rewards overview, this system is a Coinbase-funded loyalty program, rewards accrue primarily based on stability and the rewards price, and Coinbase says it doesn’t use or lend USDC with out buyer instruction.
The identical web page notes that, in a number of areas together with the US and United Kingdom, eligibility requires a Coinbase One membership.
Coinbase’s USDC product web page lists a 3.50% rewards price and says USDC rewards can be found to Coinbase One members, with plans beginning at $4.99 per thirty days.
Even when the precise reward price is variable over time, applications like this current yield as a default characteristic of holding a cash-like stability on a platform that additionally helps transfers and buying and selling.
That reduces the position of a checking account as the first place to park {dollars}.
Banks additionally distinguish between sustained yields and promotional gives as a result of the previous can reset client expectations whereas the latter usually behave like advertising and marketing spend.
Binance has run time-bound campaigns tied to its Easy Earn product.
In line with a Binance announcement, one promotion supplied a bonus tiered APR on USDC versatile merchandise on high of a real-time APR element.
A separate Binance discover states that belongings deposited in Easy Earn could also be loaned to different Binance customers, together with margin and mortgage merchandise.
It additionally notes that enormous redemption requests can delay redemptions briefly.
For banks, that disclosure issues as a result of it attracts a line between a rewards price funded by platform economics and a financial institution deposit funded inside a supervisory framework.
Nonetheless, each compete for a similar retail {dollars}.
Stablecoin rewards threaten banks’ deposits, and the client relationship that comes with them
Opposition additionally displays the funds and relationship layer that sits on high of deposits.
Checking accounts anchor payroll, invoice pay, debit, ACH, and price strains, they usually help cross-sell into lending and wealth administration.
If a share of transactional balances shifts to stablecoins held in custodial wallets, banks threat shedding each funding and buyer interplay.
That outflow will be extra responsive than conventional deposit competitors as a result of transfers can settle in any respect hours with out the identical batch constraints as legacy rails.
Regulation has begun to border how far stablecoins can go on yield, and CLARITY is changing into the automobile for a battle GENIUS didn’t settle cleanly.
The GENIUS Act method barred issuers from paying curiosity with a purpose to hold stablecoins outlined as “digital money,” however platforms can nonetheless market “rewards” that operate like yield, shifting the aggressive impression into distribution.
CLARITY debate attracts a line between “yield” and “loyalty” as stablecoin rewards come underneath hearth
Within the background is a narrower however extra explosive drafting dispute: lawmakers are in search of language that bars curiosity paid merely for holding a stablecoin, whereas nonetheless permitting activity-based incentives framed as funds or loyalty rewards.
That distinction issues as a result of it shifts the battle away from issuers and onto distributors: platforms can market a cash-like stability with a near-Treasury return with out the token itself being labeled “interest-bearing,” and banks argue that’s functionally deposit curiosity by one other title.
The result’s an try and cap “hold-to-earn” expectations whereas leaving room for “use-to-earn” applications, plus disclosures designed to cease rewards from being bought as risk-free bank-style curiosity.
The near-term math banks monitor isn’t the unfold between a Treasury yield and a single deposit price.
It’s the mixture of deposit retention, deposit repricing, alternative funding, and the way rapidly these inputs can change if stablecoin rewards stay close to money benchmarks.
The FDIC’s Dec. 15, 2025 schedule lists 0.07% for curiosity checking and 0.39% for financial savings towards a 3.89% Treasury reference yield.
In the meantime, Coinbase’s USDC web page lists 3.50% rewards for Coinbase One members, and Binance disclosures describe each promotional bonus buildings and the flexibility to lend Easy Earn belongings to different customers.