In a major development for the crypto industry, Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) have finalized a compromise to restrict stablecoin yield and rewards. This agreement comes ahead of a Senate crypto markup scheduled for May, signaling significant regulatory progress.
Punchbowl News has obtained the text of the agreement, which was the result of months of negotiations between banking and crypto advocates.
The new language introduces requirements for crypto companies offering rewards tied to stablecoins, including a broad prohibition on rewards offered “in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit.”
The Tillis-Alsobrooks text also directs regulators to propose a new series of stablecoin regulations, including the development of a stablecoin disclosure regime and a list of permissible reward activities.
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