Senate Banking Committee’s crypto market structure bill text sets up showdown over stablecoin rewards

The Senate Banking Committee, led by Chair Tim Scott, released 278 pages of bill text aiming to regulate digital assets by dividing oversight between the SEC and CFTC and clarifying asset classifications. A major point of contention is the treatment of stablecoin rewards, pitting banking groups against the crypto industry. The current text prohibits service providers from paying interest for mere holding of payment stablecoins but allows exceptions for activity-based rewards like staking or transactions. This language is reportedly not aligned with a compromise proposed by Senator Angela Alsobrooks, who advocates for stricter limits. Furthermore, the bill text does not address ethics concerns regarding President Trump's family crypto ventures, which key Democrats consider a "red line." Amendments are expected, including one that could severely limit stablecoin rewards, setting up a showdown ahead of the committee markup.

(Source：The Block)