An exchange is lobbying lawmakers to retain its stablecoin rewards program.

Foresight News reported, citing Coindesk, that a certain exchange is pressuring lawmakers to retain its stablecoin rewards program, otherwise it may withdraw its support for the cryptocurrency market structure bill (CLARITY Act). The banking industry opposes the rewards program, arguing that it would siphon deposits from the traditional financial system and harm lending operations.

The exchange's Chief Policy Officer, Faryar Shirzad, stated that research from Cornell University shows stablecoin adoption does not reduce bank lending, and the rewards program is a necessary means to compete with bank fees. Some lawmakers are considering a compromise that would only allow institutions with a banking license to offer rewards. Currently, the exchange provides a 3.5% reward to users holding USDC through its subscription service.