On the eve of the U.S. Senate's review, the banking industry proposes further revisions to the stablecoin yield compromise clause

At a critical moment when the U.S. Senate Banking Committee is about to review the digital assets bill, disputes over the stablecoin yield clause have escalated again.

According to Bloomberg on May 11, banking groups are attempting to push for last-minute modifications to the existing compromise plan, proposing to completely ban stablecoin issuers from offering any form of rewards.

This proposal aims to replace the previously agreed-upon compromise model, which allowed "users to receive rewards when actively using stablecoins."

Led by the American Bankers Association, six banking lobbying groups outlined their strong stance in a letter to senators.

They pointed out that the exception clause retained in the previous compromise plan would lead to "damage" risks to bank deposits, and therefore must be blocked to prevent large-scale fund flows to cryptocurrency platforms.

In response to this banking industry attack, the crypto sector quickly issued a strong counterattack. Coinbase Chief Legal Officer Paul Grewal publicly posted on X platform, refuting the banking industry's claims.

Grewal stated that the banking industry's proposal is not merely a simple "narrow correction," but its true intention is to "stifle competition" and deprive the crypto industry of its survival space.

In response to the banking industry's opposition, Senators Angela Alsobrooks and Thom Tillis, who helped facilitate the compromise plan, quickly issued a joint statement expressing disagreement with the banking industry's stance.

The two senators emphasized that the existing compromise should protect banking interests while also allowing crypto companies to offer other forms of customer rewards, in order to maintain market balance.

More importantly, this plan provides a valuable bipartisan cooperation path for the passage of the CLARITY Act, which is significant for advancing the establishment of the U.S. digital asset regulatory framework.

#Dispute over stablecoin yield clause