Overview
- Patrick Witt, the White House crypto adviser, said Monday the bipartisan compromise on stablecoin yield is holding and that negotiators are closing out remaining issues.
- Sen. Thom Tillis said Monday he expects to publish draft text this week to unlock a Senate Banking Committee markup that lawmakers have targeted for late April.
- The draft would bar interest-like payouts on idle stablecoin balances and allow only activity-based rewards tied to use, while also splitting SEC–CFTC oversight and protecting non-custodial DeFi tools.
- JPMorgan CFO Jeremy Barnum said Tuesday that interest-bearing stablecoins create a parallel banking system without bank-level safeguards and risk regulatory arbitrage.
- Banking groups also pushed back Monday on a White House analysis, arguing it asked the wrong question and warning that allowing yield could drain community-bank deposits and expand stablecoins toward $1–2 trillion.