TD Cowen: US banks' opposition to stablecoin rewards is unsustainable

The U.S. banking sector's opposition to paying rewards on stablecoins under the proposed CLARITY Act is likely to fail, according to an analysis by investment bank TD Cowen. The Block reports that TD Cowen noted in a recent paper that the banks' logic for opposing consumer rewards is politically unsustainable. However, the bank warned that a prolonged conflict between the banking and crypto industries could jeopardize the passage of the market structure bill itself. TD Cowen also explained that while the U.S. Office of the Comptroller of the Currency (OCC) previously moved to block indirect payments of stablecoin rewards, the action is largely insignificant as the OCC lacks discretionary power in interpreting the law.