Tim Scott, a U.S. senator, has revealed that this week banks and crypto lobbyists may compromise regarding stablecoin yield payments. In the current scenario, the Senate’s crypto market structure bill progress is stalled.
Scott attended a crypto lobby event in Washington chaired by the Senate Banking Committee, in which he said that he anticipates having the first proposal in his hands to take a look at. He further added that if that really happens before the end of this week, and I think that it will. I think we are going to be in much better shape.
The bill about which he is talking is the Senate’s crypto market structure legislation, officially known as the Digital Asset Market Clarity Act, which was rolled out to define how regulators will look after digital assets and describe the roles of various agencies.
Although progress revolving the legislation came to a standstill after disagreements arose over a provision that would prohibit third parties from providing stablecoin yield payments. Bankers claim that such yield offerings make a loophole that could take deposits away from traditional banks.
The crypto proponents say the limitation is anti-competitive and restricts user incentives. The bill is of concern to the Securities and Exchange Commission as well as the Commodity Futures Trading Commission.
The Rigorous Meetings
Senate Banking, which looks after the SEC, indefinitely delayed a markup of the bill in January. Afterward, the Senate Agriculture Committee, which looks after the CFTC, progressed its version to the Senate floor.
In the last weeks, bankers and crypto lobbyists have met in various closed-door meetings to negotiate a middle ground, but the Senate Banking Committee has not yet set any official updates to the legislative calendar.
In the latest comments, House Financial Services Committee chair French Hill mentioned the CLARITY Act can help address some of the unresolved issues associated with stablecoin regulation and wider market structure concerns.
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