Overview
- Senate Banking Chair Tim Scott said he expects to receive a first compromise proposal on stablecoin yield provisions before the week ends.
- The dispute centers on whether issuers can share reserve-generated interest with token holders, a practice banks oppose and crypto firms defend as pro-competition.
- Progress on the Digital Asset Market Clarity Act stalled after Senate Banking postponed a January markup, while Senate Agriculture advanced its version to the floor.
- Banks and crypto lobbyists have held multiple closed-door meetings over the past month, with Scott noting additional work on ethics, DeFi, and carve-out questions.
- Options reportedly under discussion include yield caps or licensing requirements, and the stakes are high given a stablecoin market exceeding $230 billion led by USDT and USDC.