Crypto Legislation Breakthrough: US Senators Reach Agreement on Key Provision

A breakthrough has been made on a crucial aspect of the proposed US cryptocurrency legislation, paving the way for its potential passage through the Senate.

According to reports, an agreement has been reached regarding the provision that was previously causing contention among lawmakers. The provision in question relates to stablecoins and their associated rewards, which have sparked debate between banks and crypto companies.

The compromise brokered by Senators Thom Tillis and Angela Alsobrooks seeks to strike a balance between regulating rewards offered by stablecoin issuers and crypto firms while allowing them to incentivize customer usage. The revised language includes a broad ban on rewards deemed economically or functionally equivalent to interest-bearing bank deposits.

The agreement also directs regulators to develop new rules for stablecoins, including a disclosure regime and guidelines for permitted reward-related activities.