BlockBeats News, March 28: The divergence in the U.S. crypto industry regarding stablecoin yields continues to be a key bottleneck hindering overall legislative progress. Multiple sources indicate that despite the recent circulation of draft text on relevant provisions in Congress, negotiations have not yet made a substantive breakthrough.
Coin Center’s Policy Director, Jason Somensatto, stated that the stablecoin yield issue is the “primary obstacle” to advancing the current crypto market structure bill, suggesting that if this issue is resolved, other provisions may quickly reach consensus.
The controversy revolves around whether to allow stablecoins to provide yields to holders. The previously passed GENIUS Act has already prohibited issuers from directly paying interest to users but has not limited rewards from third-party platforms. The banking industry is concerned that this move will lead to deposit diversion, while the crypto industry believes that restricting yields will stifle innovation.
During the negotiation process, Coinbase has faced criticism for objecting to certain provisions, being accused of “hindering the progress of the bill.” Its CEO, Brian Armstrong, had previously opposed related designs that could “stifle stablecoin yields” and expressed concerns about regulatory clarity and DeFi provisions.
The White House has convened banks and the crypto industry multiple times for discussions, but consensus has not been reached. Industry insiders point out that despite multiple rounds of negotiations, there have been no results. If the delay continues, the bill may not even make it to the Senate committee voting stage, posing a risk of “failure.”
Nevertheless, the market still holds some expectations for progress. Coinbase has indicated that the industry is preparing to jointly propose alternative solutions to resolve the yield provision dispute in the coming weeks.
