US senators are seeking a compromise on stablecoin yields to push through the stalled CLARITY bill.
PANews reported on March 11 that, according to CoinDesk, US senators are attempting to push forward the stalled CLARITY bill, a crypto market structure legislation, through a compromise on stablecoin yields. The banking industry had previously successfully lobbied for a suspension of the bill, citing concerns that stablecoin yields would siphon off bank deposits. Maryland Senator Angela Alsobrooks, who is involved in the negotiations, stated at a banking summit that both sides may need to make "some compromises" to allow for innovative growth while preventing deposit outflows.
Senator Mike Rounds pointed out that yields should be linked to account activity rather than the amount held. JPMorgan Chase CEO Jamie Dimon hinted at the acceptance of a transaction-based yield model, a position also raised by the crypto industry at the White House meeting. Recent rules proposed by the Office of the Comptroller of the Currency leave considerable room for customer-incentivized yield programs. Despite continued emphasis from the banking industry on the risks of yield loopholes to business models, the bill could still proceed to committee review if senators reach an agreement on a new compromise.
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