US Reaches Compromise on 'Stablecoin Interest Payments'…Democratic Concerns Persist

A compromise has reportedly been reached over the issue of interest payments in the stablecoin regulatory bill currently under discussion in the US Senate.

According to Crypto America on the 13th (local time), Patrick Witt, executive secretary of the White House Digital Assets Advisory Council, said, "A bipartisan compromise has been reached on the issue of stablecoin interest payments."

The remarks came ahead of the 5 p.m. (US Eastern Time) deadline that day for senators to submit amendments to the bill. Discussions are currently continuing based on the draft text released the previous day by Republicans on the Senate Banking Committee.

However, some disagreements over the compromise are said to remain. Crypto America host Eleanor Terrett, citing multiple reports, said that some Democratic Senate offices are still not satisfied with provisions that would ban paying interest on account balances.

For now, it has not been confirmed whether the bill text released the previous day has actually been revised. Terrett noted that it is unclear whether the text has changed, suggesting further updates may follow.

The debate aligns with Congress' regulatory stance aimed at preventing stablecoins from functioning as deposit-like financial products. Depending on the final text and the vote outcome, the measure is expected to affect the US stablecoin business landscape and the design of interest-bearing products.