The dispute over stablecoin rewards – and not the widespread disputes over the cryptocurrency itself – is what is holding up one of the most significant digital asset bills in U.S. history.

Banks and crypto companies clash over the profitability of Stablecoins

At the center of the dispute is a narrow but controversial question: Should third-party companies like Coinbase be able to pass on stablecoin profits to their customers? Banks say no, warning it could result in a drying up of deposits from customary financial institutions.

Crypto companies say yes, arguing that it is necessary to remain competitive. This single point of friction held up the CLARITY Act in the Senate for months, even as the Trump administration pushed strenuous for a vote.

Treasury Secretary Scott Bessent on Tuesday, he made his speech public with a blunt message – Congress must act now, before the time allocated for deliberations in the Senate expires.

According to reportsBessent described the situation as urgent, saying “time is short and now is the time to act.” He presented the legislation not only as a matter of financial policy but also as a matter of national security, arguing that economic security and national security were one and the same.

The US Treasury Secretary is considering introducing novel legislation regarding the structure of the cryptocurrency market @WSJ op-ed.@SecScottBessent he described it as a national priority, stating that “economic security is national security” and argued that the Transparency Act is the cornerstone of introducing…

— Eleanor Terrett (@EleanorTerrett) April 9, 2026

The number of adoptions adds weight to the push

The issue of urgency is not just political. Data shows that about one in six Americans already own some form of digital asset. Major banks and financial institutions have either launched or applied for cryptocurrency products.

According to Bessent, blockchain technology has found its way into real-world payments, settlements and asset trading at a scale that regulators can no longer ignore.

Global cryptocurrency market Over the past year alone, the value has ranged from $2 trillion to $3 trillion, a range that reflects both the size and volatility of the industry. This backdrop adds weight to pressures on the regulatory framework, especially as customary finance continues to push deeper into the space.

Senator Cynthia Lummis joined Bessent’s appeal, setting out the conditions for admission CLARITY Act are as good as ever.

“We have an administration, we have momentum and we have made bipartisan progress,” she said. The Senate is expected to approve the bill in April, although similar deadlines have already been pushed back.

White House study adds fuel to banking debate

A recent White House analysis concluded that the risk of deposit flight from allowing stablecoin rewards is, by its own description, “quantitatively small.”

Under GENIUS Act framework, stablecoin issuers cannot pay profits directly. However, the CLARITY Act would open the door for third-party distributors to do just that.

Some members of the banking industry rejected the White House findings, arguing that the analysis ignored key financing risks beyond the level of deposits.

Featured image from Getty Images, chart from TradingView