Club for Growth President David McIntosh Issues Letter Urging Senators to Protect Stablecoin Rewards

Will Mitola  |   January 7, 2026

Washington, D.C. – Club for Growth President David McIntosh issued a letter to U.S. Senate offices outlining the importance of preserving rewards programs on stablecoins. The letter outlines that stablecoin rewards are lawful, taxable forms of consumer compensation that reduce transaction costs, and calls for lawmakers to adopt a framework that preserves these rewards and incentives while also avoiding regulatory favoritism.

Click here to read the full letter from Club for Growth President David McIntosh.

 

EXCERPTS:

As free-market, taxpayer-rights organizations, we have long opposed efforts—whether through the tax code or through regulation—to reduce Americans’ take-home income without transparency or accountability. We are concerned that certain proposals under consideration in market structure legislation would do exactly that by restricting or eliminating stablecoin rewards, including rewards and incentives offered by third parties.

While such restrictions would not appear on a tax schedule, their effect would be unmistakable: reducing consumer purchasing power and taking money out of Americans’ pockets. Though not a formal tax, this would operate as a tax increase by another name—imposed through financial regulation rather than the tax code. Policies that diminish after-tax income through indirect regulatory means raise the same concerns as explicit tax increases, while avoiding the debate, scoring, and voter accountability that tax policy requires.

Stablecoin rewards are lawful, taxable forms of consumer compensation—such as rebates, discounts, or incentives—that reduce transaction costs and help households manage everyday expenses. Eliminating these rewards would strip consumers of income they currently earn and pay taxes on, without any corresponding tax relief or legislative scrutiny. Congress has already settled this in the GENIUS Act, which became federal law last year.

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History shows that policies advanced as “consumer protection” can instead raise costs, reduce competition, and entrench existing market structures. Restricting stablecoin rewards would directly undermine the stated objectives of market structure legislation by:

  • Reducing adoption of lower-cost, more efficient payment technologies;
  • Blocking competition, particularly from startups and new market entrants; and
  • Driving innovation offshore to jurisdictions that respect private contracts and market incentives.

As the Committees move toward mark-up, we urge lawmakers to adopt a framework that preserves lawful rewards and incentives, promotes technological neutrality, avoids regulatory favoritism, and protects taxpayers from hidden, off-budget reductions in income.

Congress has a narrow but critical window to deliver regulatory clarity that strengthens U.S. competitiveness. Limiting rewards would move the country in the opposite direction—raising costs for consumers and small businesses while undermining confidence in the legislative process.

We respectfully urge the Committees to reject any language that limits or prohibits stablecoin rewards and to proceed toward final passage of a balanced, pro-growth market structure bill.