A major clash is brewing in Washington over how stablecoins should work in the U.S. economy. Wall Street banks want to block all rewards or yields on stablecoins. But crypto groups are pushing back hard with their own set of rules. This fight is holding up a big Senate bill on crypto markets.

The Sticking Point: Stablecoin Yields and Rewards

Stablecoins are digital dollars that hold steady value. They power trading, payments, and apps in crypto and DeFi. The debate centers on whether users can earn rewards for holding or using them.

Banks say any yield on stablecoins hurts their core business. They fear people will pull money from bank savings accounts to chase crypto rewards. This week, top bankers met with crypto leaders at the White…