US Senate Tilts Playing Field Toward Banks As Crypto Bill Curbs Passive Stablecoin Yields
A new US Senate crypto bill restricts passive stablecoin yields, potentially favoring traditional banks over crypto platforms.Summary
The recently released 278-page US Senate virtual asset market structure bill introduces a provision that restricts companies from paying interest solely for holding stablecoin balances, permitting rewards only when tied to active account usage like staking or transactions. Critics, including Eleanor Terrett, suggest this move tilts the competitive playing field toward traditional banks, which retain the ability to pay interest on deposits, potentially limiting the appeal of crypto platforms for retail users seeking passive yields. Beyond yield restrictions, the bill aims to provide clarity by classifying several tokens (like XRP, SOL, DOGE) similarly to BTC and ETH under ETF rules, and it establishes guardrails for DeFi to prevent regulatory arbitrage while shielding non-controlling developers. Senator Cynthia Lummis views the bill as a crucial step for maintaining US innovation and consumer protection, but the final form remains uncertain ahead of the upcoming Banking Committee markup.
(Source：BeInCrypto)