US Crypto Regulation Bill Fails Senate Vote Over Stablecoin Rewards Dispute
The US crypto industry faced a major setback as the CLARITY Act failed in the Senate due to disputes over stablecoin rewards and banking opposition.
The US crypto industry hoped to open 2026 with a clear regulatory framework, but reality fell short. According to a Coindoo report, the highly anticipated CLARITY Act, designed to regulate the digital asset market, failed in a critical Senate vote on September 15 after falling short of the 60 votes required to advance.
This political failure exposes a deep rift within the crypto industry itself. The core dispute dividing the sector and drawing opposition from banks centers on "stablecoin rewards." While the coins themselves do not bear interest, many crypto platforms and exchanges offer users rewards for holding and utilizing them. Banks demanded significant restrictions on these rewards, fearing crypto platforms would function as interest-bearing accounts and siphon off valuable deposits needed for issuing loans.
The battle over rewards also split crypto executives: while Coinbase CEO Brian Armstrong withdrew support for the bill, arguing that "no law is better than a bad law," other industry leaders preferred compromises to keep the legislation alive. Now, with the bill stalled ahead of US elections, companies are left without a permanent legal framework, and authorities will continue overseeing the market through temporary regulations and targeted guidelines.
