Bank and crypto lobbyists have raised objections to a new draft intended to break the impasse over stablecoin yields in the US Senate’s crypto market structure bill, legislation stalled since the House passed the CLARITY Act in July.
Senator Thom Tillis told Politico he plans to publish a draft agreement this week aimed at resolving a dispute over a provision that would bar third parties, including crypto exchanges, from offering stablecoin yield payments. Banking and crypto representatives saw an earlier version this month, and Politico reported the draft drew pushback from banks, according to sources.
“I think that people are apprehensive because they haven’t seen the full text,” Tillis said, adding the draft was guided by concerns about deposit flight tied to yield offerings. The Senate bill would define how the country’s main market watchdogs regulate crypto — a framework the crypto industry has broadly advocated for.
Progress on the bill has been blocked by disagreement between banks and crypto firms over language banning stablecoin yields, despite three White House-facilitated meetings to find common ground. Stablecoin yields are a significant revenue source for crypto platforms, while the banking lobby argues third-party yield payments pose risks to the banking system by encouraging customers to withdraw deposits from traditional savings.
Tillis said he is open to revising the proposal and is aware of the pushback. He noted progress on anti-evasion provisions but said enforcement language remains under negotiation. If differences persist between banking and crypto groups, Tillis said he would convene another meeting — potentially the fourth government-mediated session — to resolve the outstanding issues and produce a negotiated mark.
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