US Senate Edges Closer to Crypto Regulatory Bill After Stablecoin Yield Deal

The US Senate is one step closer to finalizing its landmark crypto regulatory bill after key senators reached a tentative agreement with the White House on stablecoin yield rules. The deal was announced by Sens. Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), who worked with White House officials to develop language aimed at resolving a dispute between banks and digital asset firms over whether cryptocurrency exchanges should be permitted to pay yield to stablecoin holders through rewards programs. The agreement could enable the regulatory bill to move forward in the Senate Banking Committee in the coming weeks, potentially breaking a months-long impasse that has stalled the legislation since January. The central issue has focused on whether crypto exchanges should be allowed to offer yield payments to stablecoin holders, with both Tillis and Alsobrooks expressing concern about Wall Street groups' warnings that permitting stablecoins to pay yield could prompt customers to withdraw deposits from traditional bank accounts. The deal is seen as a breakthrough in the regulatory process, which has been plagued by disagreements over stablecoin yield provisions.