- A bipartisan deal on a key clause of the stablecoin bill was reached, led by Senators Tillis and Alsobrooks.
- The banking lobby secured a prohibition on stablecoin rewards that resemble interest on bank deposits.
- New exceptions allow for rewards tied to activities like Coinbase providing liquidity, collateral, and staking.
A significant bipartisan compromise on stablecoin legislation was reached this Friday, marking a critical step forward for federal cryptocurrency regulation. According to reports from Punchbowl News, the deal specifically concerns the stablecoin yield and rewards clause within the Clarity Act. Consequently, the agreement reflects concessions for both the banking industry and crypto firms, with the bill’s clause title shifting from ‘Preserving Rewards for Stablecoin Holders’ to ‘Prohibiting Interest and Yield on Payment Stablecoins.’
However, this prohibition contains crucial exceptions for crypto businesses. The new language allows crypto firms to offer rewards based on balances for activities such as providing liquidity for market making, posting collateral for trading, and staking. This broader scope of permissible rewards is a notable expansion from earlier drafts and may explain shifting industry stances.
Meanwhile, this legislative progress has garnered support from key industry players. On Friday, Coinbase CEO Brian Armstrong posted on X that the bill should proceed to markup, a change from the company’s earlier position. The deal’s final wording will now advance through the legislative process, potentially setting the stage for a long-awaited federal framework governing digital assets.
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