Galaxy Research Head: Stablecoin Yield Terms Become "Deadlock" in Crypto Structure Bill, Senate Hearing Earliest to Resume End of January

Odaily Galaxy Research Head Alex Thorn posted on platform X stating that although US Senate Banking Committee Chairman Tim Scott has not yet announced a new hearing date, since the Senate is in recess next week, the earliest possible week for the Banking Committee to reconvene the markup hearing is 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 lobbying groups are actively pushing to restrict stablecoin rewards, concerned that interest-bearing stablecoins could siphon 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 tokenized securities innovation.