U.S. Senate Resolves Issue Of Stablecoin Yield
Yahoo Finance • • business
Key Points:
- The U.S. Senate has introduced compromise language in the Clarity Act that prohibits stablecoin issuers like Circle from paying yield on reserves, while allowing activity-based rewards to continue.
- This compromise resolves months of negotiations between crypto firms seeking to preserve incentive programs and banks concerned about losing customers to yield-bearing stablecoins.
- The revised language will be reviewed by the Senate Banking Committee, with the U.S. Treasury and Commodity Futures Trading Commission (CFTC) tasked to draft detailed rules within a year after the bill becomes law.
- Coinbase Global has expressed support for the compromise, signaling alignment between major crypto players and regulators.
- Stablecoins are digital currencies pegged to assets like the U.S. dollar, and this legislation aims to clarify regulatory boundaries around their yield-bearing capabilities.
