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Senators Alsobrooks and Tillis reached an agreement-in-principle regarding stablecoin yield in the crypto and banking sectors.
U.S. Capitol building (Jesse Hamilton/CoinDesk)
Representatives from the industry reviewed the proposed yield language of the crypto market structure bill on March 23 and 24. Reactions on social media — particularly on X (formerly Twitter) — were largely negative, though this may not have significant consequences.
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Are we there yet?
The narrative
We* have received new text detailing how the crypto market structure bill could tackle stablecoin yield.
*However, only a select group has reviewed the language, which is expected to be made available for public scrutiny soon.
Why it matters
Earlier this month, Senator Cynthia Lummis (R-Wyo.) indicated her anticipation for a markup of the market structure bill — a session where lawmakers discuss amendments and language prior to voting on the legislation — in the latter half of April. Lawmakers have initiated the first step toward that markup by reaching an agreement on crypto market structure legislation.
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Breaking it down
Representatives from the crypto and banking sectors were briefed on the proposed “agreement-in-principle” revealed last week by Senators Angela Alsobrooks (D-Md.) and Thom Tillis (R-N.C.) at the beginning of this week, with crypto representatives conferring with legislative staff on Monday and banking representatives doing so on Tuesday.
There does not seem to be widespread satisfaction with the agreement. The language remains unreleased to the public, but it is expected to be disclosed in the upcoming week. Concerns vary, including the potential for the proposed language to require regulators to create new rules governing acceptable activities and how it may limit stablecoin yield balances.
Major changes to the language are improbable, although one individual familiar with the matter suggested that some minor adjustments could be anticipated. Many required modifications are primarily technical in nature, they noted.
Nevertheless, industry stakeholders appear to be preparing to propose some form of counterproposal regarding the language. It is uncertain how far this initiative will progress.
This week
This week
- Congress is expected to be on a two-week Easter break, although the ongoing dispute over funding the Department of Homeland Security could alter this schedule.
If you have thoughts or inquiries on topics I should cover next week or any other feedback you wish to provide, feel free to email me at [email protected] or connect with me on Bluesky @nikhileshde.bsky.social.
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See you next week!
