US Senate Banking Committee Delays Crypto Market Structure Legislation

The US Senate Banking Committee's consideration of a bill to regulate the cryptocurrency market has hit a snag. According to sources, key negotiator Thom Tillis, Republican Senator from North Carolina, has suggested delaying the committee's deliberation until May due to ongoing disagreements over stablecoin rewards.

The current draft of the legislation proposes prohibiting idle stablecoin accounts from receiving rewards, but allowing rewards from transaction activities. However, this provision has sparked concerns among banking industry representatives that it could attract deposits out of traditional banks, while crypto companies believe that restricting rewards will hinder innovation.