Is Your Crypto Interest at Risk? The Stablecoin Reward Regulation Battle 2026

The ink on the law is dry, but the banking lobby is already trying to rewrite the script. A new clash over stablecoin rewards is threatening to slash the yields that crypto investors have come to expect.

Stablecoin Reward Regulation Battle 2026: Banks Push Back

Efforts by major financial institutions to revisit or reinterpret Congress’ decisions regarding stablecoin rewards are sparking intense backlash. Summer Mersinger of the Blockchain Association argues that these moves are nothing more than attempts to re-litigate settled law to blunt competition.

According to Mersinger, traditional banks are seeking to stifle innovation after the fact. By challenging the regulatory framework that allows digital assets to offer competitive rewards, the banking lobby hopes to regain its grip on consumer deposits.

Settled Law or Open Question?

While the crypto industry views the current statutes as clear, the banking sector claims that ambiguities remain. This tug-of-war is taking place as stablecoins become a mainstream alternative to traditional savings accounts, putting trillions of dollars in deposits at stake.