Stand With Crypto stakeholders ramp up pressure on Senate Banking Committee on DeFi protections, stablecoin rewards

Stakeholders from Stand With Crypto are increasing pressure on the Senate Banking Committee to protect decentralized finance (DeFi) and preserve the ability for crypto exchanges to offer rewards on stablecoins. The organization’s state chapter presidents sent a letter to committee members as they grapple with regulating stablecoin rewards and DeFi, awaiting further action on broader crypto legislation. A key point of contention is stablecoin rewards, with banks arguing yields would drain deposits, while crypto firms claim restrictions would stifle innovation. Another issue is the treatment of DeFi, with the Blockchain Regulatory Certainty Act (BRCA) aiming to clarify that software developers aren't money transmitters, but some Democrats propose broader intermediary definitions. Stand With Crypto, backed by Coinbase, actively tracks lawmaker positions on crypto and influenced recent elections, demonstrating its growing influence in the space.

(Source：The Block)