Overview
- The March 1 target set by the White House passed with no agreement between banks and crypto firms on stablecoin rewards, and talks continue without a new deal.
- Negotiations hinge on whether issuers or platforms may offer yield, with banks warning of deposit flight from interest‑like rewards and crypto firms pushing for narrowly defined, usage‑linked incentives.
- A proposed OCC rule implementing the GENIUS Act signaled that third‑party reward arrangements may run counter to the law’s intent, weakening industry leverage on reward programs.
- The Senate Agriculture Committee advanced its portion of the bill, but the Senate Banking Committee has delayed markup pending yield language, with another review discussed for late March or April.
- Analysts and commentators warn that absent a compromise, agencies such as the SEC and OCC could continue regulation by enforcement, even as JPMorgan projects larger institutional inflows in late 2026 if statutory clarity arrives and Polymarket odds swing on each development.