The U.S. Senate has amended a market structure bill in a way that would limit stablecoin rewards, deepening tensions between the cryptocurrency industry and the financial sector, The Block reported on Jan. 13.

The bill would ban rewards solely for holding stablecoins, but allow activity-based rewards such as trading or providing liquidity. Democratic Senator Angela Alsobrooks proposed the provision, and the Senate Banking Committee released an amendment reflecting it, The Block reported.

Stablecoin rewards are a key point of contention between banks and the crypto industry. The banking sector opposes the GENIUS Act passed in 2025, saying it creates liquidity risks, and has taken issue with platforms such as Coinbase offering rewards. The crypto industry, for its part, has pushed back, saying the bill is overly restrictive. Coinbase warned it would withdraw support for the market structure bill if limits on reward programs are tightened.

The amendment also includes provisions to protect crypto developers. Proposed by Senators Cynthia Lummis and Ron Wyden, it includes language to ensure software developers and infrastructure providers are not regarded as financial intermediaries. The measure is intended to address concerns that open-source contributors could bear regulatory liability, The Block reported.

The bill is expected to go to the full Senate after approval by the Senate Banking Committee and coordination with the Agriculture Committee. It would then need to be reconciled with the House-passed Digital Asset Market Clarity Act, and the final version would require President Donald Trump’s signature.