Banks and Crypto Backers Tussle as Senators Eye Landmark Digital Asset Bill
Banking groups are proposing last-minute changes to a compromise on stablecoin yield as a Senate panel considers a digital asset bill. The proposed changes would limit stablecoin issuers from providing rewards on the asset, which the crypto lobby had hoped to pass on to customers for keeping stablecoin in an account. Crypto advocates are opposing the proposed language, calling it "anti-competitive" and saying it is designed to "kill competition" by preventing crypto companies from offering customer rewards.
➤ Banking groups are proposing last-minute changes to a Senate digital asset bill, specifically targeting stablecoin yield rewards.
➤ The banking lobby argues that proposed exceptions could incentivize customers to hold stablecoins over traditional bank deposits, while the crypto industry calls the changes anti-competitive.
➤ Senators involved in the compromise express disagreement with the banking lobby's stance, aiming for bipartisan passage of the bill to provide regulatory certainty.
