Lates News

U.S. Senator Thom Tillis and Angela Alsobrooks have reached a preliminary compromise on the issue of stablecoin yields in the Encryption Market Structure Act "Clarity Act," providing a key advancement towards advancing the bill to the Senate hearing stage. The compromise may involve prohibiting stablecoins from providing passive yield on held balances in response to concerns from the banking industry about the impact of "bank-like interest" on traditional financial systems. Alsobrooks stated that this is aimed at protecting innovation while preventing massive outflows of deposits. However, the specific legislative details have not been disclosed yet, with industry experts stating that they have not seen the final text. Furthermore, there are still disagreements surrounding topics such as decentralized finance (DeFi), and the bill as a whole still requires further coordination. In terms of the legislative process, the bill is expected to have a hearing in the Senate Banking Committee in late April at the earliest, and if passed, it will need to be integrated with the Agriculture Committee version before advancing to full Senate deliberation.