Stablecoin payments hit $390B in 2025 as lawmakers clash over crypto rewards
Stablecoin payments surged to $390 billion in 2025, marking a 673% increase from the previous year, according to a McKinsey report. Meanwhile, lawmakers in Washington remain deadlocked over new rules for digital assets as banks and crypto firms push for opposing changes to proposed legislation.
The Digital Asset Market Clarity Act, designed to split oversight of digital assets between the SEC and CFTC, has stalled in the Senate. A key sticking point is the treatment of stablecoin rewards, which banks claim could pull deposits away from community banks and credit unions. However, critics note that these institutions have not raised similar concerns about existing crypto card rewards, such as the Gemini Mastercard, which already offers 4% cashback in crypto on fuel purchases.
Senators are now working on a compromise. Sen. Angela Alsobrooks has proposed adding safeguards against deposit flight while still allowing innovation in rewards. The White House has suggested permitting activity-based rewards, but banks are pushing for an outright ban. In parallel, Mastercard has expanded its **Crypto Partner Program**, bringing over 85 crypto firms into a unified payments network. The programme provides a structured way for these companies to integrate with Mastercard's global infrastructure, further embedding crypto transactions into mainstream finance.
If banks succeed in removing yield and reward provisions from the Clarity Act, it would create tension with Mastercard's growing crypto card ecosystem. The outcome of Senate negotiations will determine whether stablecoin rewards face restrictions or continue expanding alongside traditional banking services.
