US Nears Stablecoin Rewards Deal as China Pushes Digital Yuan Against 1:1 Digital Dollars
Updated
Updated · Bloomberg · May 11
US Nears Stablecoin Rewards Deal as China Pushes Digital Yuan Against 1:1 Digital Dollars
1 articles · Updated · Bloomberg · May 11
A US compromise on stablecoin rewards is taking shape, potentially ending a fight over whether exchanges can pass yield-like incentives to users.
The dispute centered on the Genius Act, which already bars issuers of 1:1 dollar-backed tokens from sharing income earned on reserve assets with customers.
Banks had pushed to ban third-party rewards too, arguing they could pull deposits out of the banking system, while crypto firms said a total ban would choke innovation.
China is likely to answer any US breakthrough by promoting the digital yuan in emerging markets most vulnerable to dollarization, sharpening competition over global savings.
Will emerging markets choose China's state-controlled digital currency or America's private stablecoins in the battle to de-dollarize?
Can US stablecoins evolve beyond crypto trading to rival China's new yield-bearing digital yuan for global savings?
Could the digital currency race make traditional banking obsolete before the industry can fully adapt to the new competition?
Stablecoin Yields and Digital Yuan Interest: How 2026 Legislation Is Shaping the Global Currency Battle
Overview
In early May 2026, the United States reached a major legislative breakthrough on stablecoin rewards, as Senators Thom Tillis and Angela Alsobrooks introduced new language for the CLARITY Act. This compromise, shaped by months of debate between banking and crypto industry groups, specifically addresses how crypto companies can offer rewards on stablecoin holdings. The White House is pushing for swift action on the bill, which builds on the earlier GENIUS Act and aims to provide clear rules for digital assets. This progress marks a turning point in US digital asset regulation, setting the stage for further developments in the global race for digital currency leadership.