Galaxy Research Head: Stablecoin Yield Terms Become "Deadlock" in Crypto Structure Bill, Senate Hearing Could Resume as Early as Late January

Odaily News: Galaxy's Head of Research, Alex Thorn, posted on platform X stating that although U.S. Senate Banking Committee Chairman Tim Scott has not announced a new hearing date, as the Senate is in recess next week, the Banking Committee could potentially reconvene for a markup hearing as early as the week of January 26-30. The Senate Agriculture Committee, responsible for CFTC-related matters, had previously also postponed its markup hearing to January 27.

Previously, Tim Scott had 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 lobbyists are actively pushing to restrict stablecoin rewards, concerned that interest-bearing stablecoins could siphon off bank deposits and destabilize the banking system. A compromise proposal put forward to secure lawmaker support was ultimately deemed unacceptable by the stablecoin industry, with some viewing the issue as existential. Other unresolved issues include restrictions on DeFi and illicit activities, as well as limitations on innovations in tokenized securities.