Stablecoin Politics Threaten to Derail US Market Structure Reform
Political conflict over stablecoin yields is jeopardizing long-awaited US crypto market structure reform legislation.Summary
A political dispute centered on whether crypto platforms can offer yields on stablecoins is threatening to halt the progress of the US crypto market structure reform, specifically the CLARITY Act. Galaxy CEO Mike Novogratz warns that opposition from the banking lobby, which fears losing deposits to crypto platforms offering rewards, could kill the bill entirely. Banks are lobbying to close what they call a "payment of interest loophole," arguing stablecoin rewards threaten community banks. Critics contend the bill unfairly protects incumbents by restricting crypto platforms while banks can still pay interest on deposits. The standoff has also highlighted friction within the White House and between regulators and the crypto industry, though some officials urge passing the bill now to avoid potentially harsher future regulation. Ultimately, the broader reforms concerning major crypto assets and DeFi distinctions remain stalled amid this intense lobbying battle.
(Source：BeInCrypto)