Galaxy Research Head: Stablecoin Yields Are Key Sticking Point in U.S. Crypto Structure Bill Negotiations; Next Hearing May Start in Last Week of January

Odaily News: Galaxy Research Head Alex Thorn posted on platform X, stating that U.S. Senate Banking Committee Chairman Tim Scott has announced a delay in the hearing for the crypto market structure bill. It is reported that the issue of stablecoin yields is a key sticking point in the negotiations. Banking lobbying groups are actively pushing to restrict stablecoin rewards, concerned that interest-bearing stablecoins could siphon bank deposits and undermine the stability of 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.

Furthermore, Alex Thorn revealed that although Tim Scott has not yet announced a new hearing date, since the Senate is in recess next week, the Banking Committee could potentially reconvene for a revised hearing as early as the week of January 26-30. The Senate Agriculture Committee, responsible for CFTC-related matters, had previously postponed its revised hearing to January 27.