Investing.com — announced Friday that a breakthrough agreement has been reached regarding stablecoin yield provisions, potentially breaking a months-long legislative stalemate in the U.S. Senate.
The compromise addresses a contentious “rewards” feature that had previously stalled progress on the sweeping digital asset market structure legislation.
Legislative path cleared for market structure vote
The dispute centered on whether crypto exchanges should be permitted to offer interest-like rewards to customers for holding stablecoins.
Traditional banking institutions had aggressively lobbied for a total ban on these incentives, citing fears of “deposit flight” where consumers might move capital out of traditional bank accounts in favor of higher-yielding digital assets.
Under the new deal, banks secured stricter limitations on crypto stablecoin rewards, though the fundamental ability for platforms to offer them remains intact.
Faryar Shirzad, Chief Policy Officer at Coinbase, noted that the agreement protects the rights of American users to earn rewards based on authentic platform and network usage.
The consensus is expected to propel the broader crypto market structure bill toward a critical vote in the Senate Banking Committee.
The legislation is designed to provide long-awaited clarity by delineating the specific regulatory jurisdictions of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over the digital asset ecosystem.
