Stablecoin yield deal clears path for US Senate crypto bill

5 articles · Updated · Bloomberg · May 1

Coinbase said the agreement resolves a key dispute over exchange rewards for holding stablecoins, after Senate negotiations led by Thom Tillis and Angela Alsobrooks.
The compromise distinguishes permitted bona fide rewards from returns deemed economically equivalent to bank deposits, a central banking industry concern.
The issue had stalled broader crypto legislation earlier this year, as banks warned stablecoin rewards could pull deposits from traditional lenders.

With stablecoin yield now restricted, can crypto firms still design rewards that outcompete traditional bank savings accounts?

As the US and EU both curb stablecoin interest, will this push innovation toward new, unregulated forms of digital assets?

A White House report suggests banning stablecoin yield has high consumer costs. Will the new rules prove this economic forecast right?