Galaxy Head of Research: Stablecoin Yields Are the Key Sticking Point in U.S. Crypto Framework Bill Negotiations
Jinse Finance reported that Alex Thorn, Head of Research at Galaxy, posted on X that Tim Scott, Chairman of the U.S. Senate Banking Committee, has announced the postponement of the crypto market structure bill hearing. It is reported that the issue of stablecoin yields is a key sticking point in the negotiations. Banking lobby groups are actively pushing to restrict stablecoin rewards, fearing that interest-bearing stablecoins could siphon off bank deposits and undermine the stability of the banking system. The compromise proposal put forward to win lawmakers’ support was ultimately deemed unacceptable by the stablecoin industry, with some considering the issue a matter of survival. Other unresolved issues include restrictions on DeFi and illicit activities, as well as limitations on tokenized securities innovation. In addition, Alex Thorn revealed that although Tim Scott has not yet announced a new hearing date, since the Senate will be in recess next week, the earliest the Banking Committee could reconvene for a revised hearing would be the week of January 26 to 30. The Senate Agriculture Committee, which is responsible for CFTC-related matters, has also postponed its revised hearing to January 27.
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