Senators negotiating a key cryptocurrency bill could release draft text resolving the stablecoin yield dispute as early as this week. The debate centers on whether exchanges can pay interest on stablecoin holdings. Banking groups have criticized a White House report that found a yield ban would minimally affect bank lending, arguing it underestimates future risks.
Senators may release compromise text for the stalled crypto market structure bill this week. Senator Thom Tillis stated the draft could become public soon, with negotiations focusing on anti-evasion and enforcement.
The impasse concerns whether crypto exchanges can pay yield to stablecoin holders. This issue has delayed the Clarity Act for months.
Banking groups have pushed back against a recent White House economic analysis. The American Bankers Association argued the Council of Economic Advisers report “studied the wrong question.”
The ABA contended the report used today’s $300 billion market, not a projected $1-$2 trillion future scale. Observers warn a restrictive approach could push yield activity to other jurisdictions.
“When the White House’s own economists run the numbers and conclude that allowing stablecoin yield would increase bank lending by just 0.02%, it’s very hard to sustain the argument that this is a serious systemic threat,” said Simon Jones of Reya. He suggested the banking lobby’s stance is now about competitive positioning.
The legislative window for the bill is shrinking, with a need to pass by May. Treasury Secretary Scott Bessent recently urged lawmakers to finalize the legislation.
Some experts believe the final compromise may distinguish between passive and action-based yield. Stefan Muehlbauer of CertiK noted a risk that yields could be prohibited, which would cause exchanges to reject a deal.
