US Crypto Bill Talks Stall Amid Stablecoin Yield Debate

US lawmakers are struggling to reach a consensus on a proposed crypto bill due to disagreements over stablecoin yield. The issue has placed Senator Thom Tillis at the center of negotiations, and his team has been meeting with industry representatives and administration officials in recent days.

The debate has overshadowed other complex areas of the legislation, particularly those related to decentralized finance (DeFi). Industry participants say that the process is unlikely to produce a sweeping agreement between traditional financial institutions and the crypto sector. Instead, negotiators are working towards language that reflects the minimum terms both sides can accept.

The clarification on capital rules for tokenized securities by US regulators has provided some relief to banks and industry players. The guidance states that eligible tokenized securities should receive the same capital treatment as traditional, non-tokenized equivalents. This means that the underlying technology used to issue or transact in a security does not typically alter its regulatory treatment.