According to crypto reporter Eleanor Terrett, after months of collaboration between Senate members and industry experts, the 278-page bipartisan crypto market structure bill has been released.
Key Provision: Restricting Stablecoin Yields
Per page 189 of the draft, companies are prohibited from offering interest solely based on user stablecoin holdings. This effectively ends the practice of earning rewards just for holding stablecoins.
- Rewards will only be allowed if tied to specific user actions, such as account opening, trading, staking, providing liquidity, asset collateralizing, or participating in governance.
- The current draft is subject to changes, as senators have 48 hours to propose amendments, with a finalized version expected by Thursday.
Banks Poised to Benefit
If passed, the bill could position banks as the dominant players in the stablecoin landscape.