U.S. Senator Tim Scott: Stalled Crypto Legislation Expected to Break Through This Week

On Tuesday, Tim Scott, Chairman of the U.S. Senate Banking Committee, revealed at a crypto lobbying event in Washington, D.C., that the stalled crypto market structure bill is expected to see a breakthrough this week.

He stated that a compromise proposal regarding stablecoin yield payment terms could be reached this week, and if achieved, it would remove the biggest obstacle to advancing the bill.

Since the postponement of the merger review in January, the Senate Banking Committee has been seeking to push forward its version of the crypto market structure bill, which aims to establish a clear regulatory framework for authorities overseeing cryptocurrencies.

As early as July last year, the House of Representatives passed a similar piece of legislation called the CLARITY Act. The bill currently being advanced by the Senate Banking Committee echoes the legislation previously passed by the House, jointly supporting the improvement of the cryptocurrency regulatory framework.

The core controversy of the bill revolves around whether to prohibit third-party payment of stablecoin yields. The inclusion or exclusion of this clause will directly determine the bill’s final fate.

Simply put, the banking industry believes that stablecoin yield services could trigger deposit outflows and threaten the stability of the banking system; meanwhile, the crypto industry counters that this is anti-competitive behavior, as yield mechanisms have become an important tool to attract users.

However, the stablecoin yield issue is just the tip of the iceberg. Scott revealed that negotiations on the bill also involve key topics such as moral clauses, decentralized finance (DeFi) regulatory frameworks, and scope delineation.

Although these issues do not attract as much attention as the stablecoin yield clause, they are equally critical factors affecting the quality of the legislation.

Over the past 30 days, lawmakers have made substantial progress on these issues, with overall momentum trending positively.

In summary, Scott’s latest remarks clearly indicate that the Banking Committee is actively pushing forward, striving to quickly complete legislative steps.

This positive development is undoubtedly good news for the crypto industry, signaling that the long-awaited regulatory clarity may soon become a reality.

#CLARITY法案 #Stablecoin yields