U.S. Senators to Unveil Revised Stablecoin Yield Draft This Week, Potentially Impacting Market Structure Legislation

According to Decrypt, U.S. Senator Thom Tillis stated that the Senate is expected to release the revised draft text on stablecoin yield distribution this week. Currently, banks and crypto firms are divided over whether cryptocurrency exchanges should be permitted to pay yields to stablecoin holders through reward programs—a dispute that has stalled the legislative progress of the Clarity Act. The White House Council of Economic Advisers recently released a report stating that banning stablecoin yields would have a negligible impact on small banks, boosting bank lending by only 0.02%. However, the American Bankers Association contends that this analysis underestimates the risks. Observers note that if the draft provisions are overly restrictive, users and liquidity could shift to other jurisdictions that permit such yields.