U.S. Senators and White House Reach Principle Agreement on Stablecoin Yield Handling

Odaily News: Key negotiators advancing crypto legislation in the U.S. have reached a "principle agreement" on how to handle stablecoin yields, an issue that has become one of the core disagreements in pushing forward the crypto market structure bill.



Senators Angela Alsobrooks and Thom Tillis have reached the aforementioned principle agreement with the White House. Connor Lounsbury, a spokesperson for Alsobrooks, stated that the agreement aims to protect stablecoin innovation and prevent deposit outflows. Meanwhile, issues such as ethics and illicit finance in the broader legislation still need to be resolved to secure broad bipartisan support from the Senate Banking Committee.



Patrick Witt from the White House posted on platform X, calling this principle agreement a "significant milestone" in advancing the passage of the CLARITY Act, and noted that finishing work on other outstanding issues is still required.



The GENIUS Stablecoin Act passed in July previously prohibited stablecoin issuers from paying interest directly to holders but did not prevent third-party platforms like Coinbase from offering rewards. The Senate Banking Committee plans to hold a hearing next month after the Easter recess to amend and vote on the bill. (The Block)