The dispute between Crypto stakeholders and traditional banks has re-emerged to scrutinize the proposed clarity of conduct. At the heart of the debate is the provisions that banking industry members want to add, which would ban the rewards or yields of stubcoins offered through crypto platforms.
The discussion continues before Passing the act of geniussigned the law in July to address multiple aspects of digital asset regulation. The law included a condition that restricted stubcoins from channeling interest on bank deposits. However, banks now argue that restrictions should be extended directly to exchanges. This is the idea that code supporters say they’re invalidating what Congress has already settled.
Lobby for the Clarity Act yield ban
in xPostCoinbase CEO Brian Armstrong has revealed that large banks are lobbying to overturn regulations that protect consumers’ ability to earn returns on digital assets such as USDC. He said attempts to revisit the Stablecoin Rewards restrictions contradict the legislative intent of the Genius Act.
I have never been more bullish about clear rules of cryptography. It is clear that the market structure is a freight train off the station.
But it didn’t stop the big bank coming for another handout – this time it was paid by your crypto reward. They want to undo your right… pic.twitter.com/hmpymagdhj
– Brian Armstrong (@brian_armstrong) September 29, 2025
Additionally, the CEO of Coinbase has now described the Senate market structure law as the next major step, saying it already has bipartisan support in the House. Armstrong warned that including a yield ban would bail out banks with record profits at the expense of consumers.
He emphasized that tens of millions of Americans use code and see rewards as part of their value proposition. His comments constituted the push as a test of whether lawmakers support the already codified measures.
This development comes amidst the delay in markup of clear acts due to the looming government shutdown. The markup will take place next month before the bill heads to the Senate floor, but it remains unclear whether the bill will be passed this year.
Crypto Group launches a campaign against bank lobby
Lobbies from banks include a clear law-based ban on exchange yields, resulting in an organized response from the crypto industry. Journalist Brendan Pedersen xPost that The Blockchain Association has launched a public campaign to “advocate for the Genius Law.”
In a letter to Senate Banking Committee Chairman Tim Scott and other Congressional leaders, CEO Summer Mersinger argued that the provisions of the Genius Act should be considered “resolved law.” The letter urged lawmakers not to resume discussions that had already been resolved during negotiations earlier this year.
Bank supporters argue that Stablecoin yields work like interest on bank deposits, and can possibly withdraw funds from the traditional financial system. The Bank Policy Institute is among the organisations urging Congress to extend the ban beyond its issuer.