Galaxy Research Head: Stablecoin Yield is Key Sticking Point in U.S. Crypto Structure Bill Negotiations; Next Hearing Could Start in Final Week of January

Odaily Galaxy Research Head Alex Thorn posted on platform X stating that U.S. Senate Banking Committee Chairman Tim Scott has announced a postponement of the hearing on the crypto market structure bill. It is reported that the issue of stablecoin yield 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.

Furthermore, Alex Thorn revealed that although Tim Scott has not yet announced a new hearing date, due to the Senate being 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 also postponed its revised hearing to January 27.