Banking groups seek stablecoin yield changes as Senate panel reviews digital asset bill
Updated
Updated · Bloomberg · May 9
Banking groups seek stablecoin yield changes as Senate panel reviews digital asset bill
6 articles · Updated · Bloomberg · May 9
The proposed revisions would alter a compromise on stablecoin rewards brokered earlier this month by Senators Thom Tillis and Angela Alsobrooks.
The push comes as a key Senate committee begins marking up what supporters see as landmark legislation to set clearer rules for digital assets.
The late changes highlight continuing friction between banks and crypto backers over how stablecoin incentives should be treated in a long-sought US regulatory framework.
Will new regulations protect bank deposits or stifle a popular crypto investment tool?
Could a U.S. ban on stablecoin yield make other countries the world's new crypto capitals?
Banks vs. Crypto: Who will ultimately control the future of digital savings?
Stablecoin Regulation in 2026: The Clarity Act’s Yield Ban and Its Ripple Effects on U.S. Finance
Overview
The Clarity Act, currently under Senate review, aims to create a clear regulatory framework for stablecoins after intense negotiations. A key compromise, led by Senators Tillis and Alsobrooks, prohibits rewards on idle stablecoin holdings but allows them when stablecoins are actively used. This approach seeks to balance crypto innovation with consumer protection and financial stability. The new rules are expected to shift stablecoin business models from 'buy and hold' to 'buy and use,' prompting significant market adjustments. The Act’s progress reflects ongoing debates between banking stability and digital asset growth, shaping the future of U.S. financial regulation.