Senators and White House Reach Preliminary Agreement on Stablecoin Yield Rules — Politico Reports

Investing.com – Important senators announced on Friday that they have reached a preliminary agreement with the White House on cryptocurrency legislation involving stablecoin yields, which could break a months-long deadlock and advance the regulatory bill.

According to Politico, Senator Tom Tillis (Republican from North Carolina) and Senator Angela Alsobrooks (Democrat from Maryland) worked with White House officials to draft provisions aimed at resolving disputes between banks and digital asset companies over whether crypto exchanges should be allowed to pay yields to stablecoin holders through reward programs.

“Senator Tillis and I have indeed reached a principled agreement,” Alsobrooks said on Friday. “We have made significant progress. I believe this will enable us to protect innovation while also giving us the opportunity to prevent large-scale margin outflows.”

The agreement could help this milestone cryptocurrency regulation bill make progress in the Senate Banking Committee in the coming weeks. The legislation has been stalled in the committee since January, partly due to disagreements over the stablecoin yield provisions.

The core issue centers on whether crypto exchanges should be permitted to pay yields to stablecoin holders. Both Tillis and Alsobrooks expressed concerns about warnings from Wall Street groups, which caution that allowing stablecoins to pay yields could prompt customers to withdraw collateral from traditional bank accounts.

This article was translated with AI assistance. For more information, see our Terms of Use.