Crypto Market Structure Bills Progress Amid Stablecoin Reward Debate

Bernstein emphasizes the urgency for U.S. crypto market structure legislation as stablecoin reward concerns persist, amidst a Senate meeting on December 17, 2025, held by Tim Scott.

The legislative outcome could reshape the $307.6 billion stablecoin market, impacting fees and interests in banking sectors safeguarding substantial revenues.

Legislative Window Open for Crypto Market Reforms

Bernstein highlights an immediate legislative opportunity for U.S. crypto market bills, amid ongoing debates over stablecoin rewards prohibited by the GENIUS Act. This legislative moment could reshape U.S. crypto markets, but stablecoin reward restrictions face significant pushback from banking institutions.

Legislative Window Open for Crypto Market Reforms

Bernstein pointed out that the legislative window for crypto market structure bills is open, focusing on H.R.3633 amid debates on stablecoin rewards. The GENIUS Act, effective July 2025, prohibits these rewards.

Senate Banking Committee Chair Tim Scott convened a meeting signaling the priority of these bills. Coinbase’s Faryar Shirzad highlighted banks’ significant revenues potentially at risk due to reward restrictions.

Banks Defend $360B Revenue Amid Crypto Legislation

The prohibition of stablecoin rewards could significantly affect both the crypto and banking sectors, with banks lobbying against indirect yield provisions. These moves aim to safeguard over $360 billion in annual bank revenues.

Stablecoin issuers face pressure as banks push to maintain deposit spreads, arguing that rewards undermine their traditional financial models. This lobbying reflects a deep-rooted concern about potential financial shifts. Faryar Shirzad, Chief Policy Officer, Coinbase, stated, “Stablecoin rewards remain under debate.”

GENIUS Act’s Precedent on Stablecoin Interest Bans

The GENIUS Act sets a precedent by banning stablecoin issuers from paying interest, reflecting similar historical tensions over financial innovations. Past regulatory shifts have often led to fierce debates.

Data suggest that if permitted, stablecoin rewards could escalate to $15-25 billion annually, posing a significant challenge to traditional banking structures. Experts believe legislative outcomes could redefine crypto landscapes.