Summary
- US banking groups said recently agreed rules on stablecoin yield are insufficient because they do not fully ban interest payments.
- The compromise would limit structures that let stablecoins function like deposits, but it allows some exceptions, including rewards programs, which could weaken the intent of the regulation.
- There are also signs in Congress that lawmakers want to move past the yield debate, with one aide saying banks should not turn a small win into a loss.
Forecast Trend Report by Period
US banking groups said a compromise on limits for stablecoin interest payments does not go far enough.
Eleanor Terrett, host of Crypto in America, reported on May 4 that major banking associations believe the recently agreed rules on stablecoin yield fall short of a full ban on interest payments. The groups avoided sharp criticism but plan to push for further revisions.
The compromise is designed to curb structures that let stablecoins function like deposits. But it still allows some exceptions, including rewards programs. Banks argue those carve-outs could undermine the purpose of the regulation.
At the same time, sentiment on Capitol Hill suggests lawmakers want to close out the debate. Terrett cited a Senate aide as saying, "It's time to move past the yield debate," and that banks should not turn a small win into a loss.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
