TD Cowen: Controversy over stablecoin interest-bearing rules may hinder progress of the CLARITY Act

The TD Cowen report points out that disputes over stablecoin interest-bearing regulations may cause banks to lose their advantage in the game, and politically, opposing consumers receiving returns is difficult to sustain. The report states that the OCC's implementation proposal for the GENIUS Act prohibits issuers from directly paying stablecoin interest, but only sets a "rebuttable presumption" ban on indirect payments via third-party platforms. Banks are seeking additional prohibitions, but if the stalemate continues, it may affect the passage of the U.S. crypto market structure bill (CLARITY Act).