Vault: Tillis-Alsobrooks cinch deal on stablecoin yield
Punchbowl News • • business
Key Points:
- Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) have reached a bipartisan compromise to limit yield and rewards on stablecoins, ahead of a planned Senate crypto markup in May.
- The agreement, developed through months of negotiation between banking and crypto industry representatives, aims to regulate how crypto companies offer rewards linked to stablecoins.
- The compromise includes a broad ban on rewards that are economically or functionally equivalent to paying interest on bank deposits.
- It also mandates regulators to create new stablecoin regulations, including a disclosure framework and defining permissible reward activities for stablecoins.
