Banking and crypto industry lobbyists are pushing back against a new Senate draft meant to resolve a long-running dispute over stablecoin yields in US legislation. Lawmakers have been trying to move forward with a crypto market framework after the House passed the CLARITY Act in July, but progress stalled over a provision that would prohibit third parties — including crypto exchanges — from offering yield on stablecoins.
Senator Thom Tillis told Politico he plans to publish a draft agreement this week intended to bridge the divide. An earlier version circulated to industry groups this month, and sources told Politico that banks pushed back on parts of the proposal. Tillis said the draft is driven in part by concerns about deposit flight if attractive yield options are widely available outside the traditional banking system.
The broader Senate bill aims to clarify which federal agencies will regulate different parts of the crypto market, a structure the crypto industry has sought. But the single issue of stablecoin yield payments has become a sticking point: yield programs are a major revenue source for crypto platforms, while bank lobbyists warn that third-party yields could siphon deposits from insured banks and introduce risks to the banking system.
Despite three White House-facilitated meetings to seek compromise, negotiators have not resolved the language. Tillis said he is open to revising the draft and has noted some agreement on anti-evasion measures, though specific enforcement provisions remain under negotiation. If banking and crypto groups remain at odds, Tillis said he would call another mediated session — potentially the fourth — to try to reach a negotiated mark.
Stakeholders on both sides appear cautious as the full draft has not yet been released publicly. Lawmakers and industry representatives will likely continue talks in the coming days to refine text around yield restrictions, anti-evasion clauses, and enforcement mechanisms.
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