Key figures from the cryptocurrency sector recently reviewed the updated market structure legislation in the Senate, and their initial response indicated that the wording regarding permissible stablecoin yields was both limited and ambiguous, as reported by a source familiar with the latest draft.
This revised text, which was shared on Friday by Senators Angela Alsobrooks and Thom Tillis, proposes a prohibition on yield payments simply for holding stablecoins. It aims to prevent any setup resembling a bank deposit and imposes additional constraints on other potentially accepted activities. The source also noted that the criteria for assessing activity-based rewards for stablecoins remain unclear.
The cryptocurrency sector had its first look at this revised segment of the Digital Asset Market Clarity Act during a private session on Capitol Hill in Washington on Monday. This meeting aimed to resolve challenges in securing a hearing with the Senate Banking Committee. Bank representatives maintained that rewards linked to stablecoins should not resemble interest-bearing bank deposits, arguing that such competition could hinder industry growth and reduce lending capacity. Consequently, the compromise permits rewards based on users’ stablecoin activities, but not on their account balances.