Crypto Leaders ‘Hopeful’ On Latest Stablecoin Yield Language – Was A Solution Reached?

The stablecoin yield dispute, the main issue delaying the crypto market structure bill, may be nearing resolution after a second round of meetings with Senate staffers, recent reports revealed, building expectations for a markup session by the end of the month.

At the end of the week, the crypto and banking industries reviewed the latest language on whether companies can offer rewards to stablecoin holders without triggering deposit flight. Two anonymous sources, one from each party, told Crypto in America that crypto industry participants read the text on Thursday, while banks briefed on it on Friday.

According to the report, neither source discussed details on the latest version of the stablecoin compromise, but “said they were hopeful a workable solution had been reached this time.”

The latest deal follows the crypto industry’s dissatisfaction with the late-March draft. It’s worth noting that the two parties have been disagreeing over the potential prohibition of yield and rewards on stablecoin balances, delaying the crypto bill for nearly three months.

This restriction would broadly apply to digital asset service providers, including exchanges and brokers, as well as their affiliates. The text allegedly aims to limit workarounds and prohibit any activity “economically or functionally equivalent” to interest, addressing concerns from the banking industry side.

The proposal reignited backlash from major crypto players, including Coinbase and Stripe. Coinbase told Senate offices it could not support the updated draft, as the company had “significant concerns” about the latest stablecoin yield language.

As Congress is out on Easter break, the Monday report noted that it remains unclear whether the Senate Banking Committee will publish the latest draft ahead of the bill’s markup session, which is anticipated for late April.

A spokesperson for Senator Thom Tillis’s office affirmed that the final text on the compromise between industry stakeholders and the Senate Banking Committee would be delayed due to concerns that releasing the text ahead of a markup “could give opponents an opening to slow the bill’s progress.”