Tim Scott: US Senate Crypto Bill May See Breakthrough, Stablecoin Yield Controversy Enters Critical Stage

Gate News reports that on March 18, U.S. Senate Banking Committee Chairman Tim Scott stated that progress is expected this week on disagreements over stablecoin yield payment terms, which have previously hindered the advancement of the cryptocurrency market structure bill. Scott said he anticipates receiving the first compromise proposal soon and is optimistic about reaching an agreement in the near term.

The bill aims to clarify the regulatory framework for cryptocurrencies in the U.S., including the division of responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Previously, the House passed a similar “CLARITY Act,” but the Senate version has stalled over issues related to stablecoin yield mechanisms.

The controversy centers on whether third-party platforms should be allowed to offer stablecoin yields to users. Banking groups argue that such yield models could weaken the appeal of traditional deposits and impact financial stability, while the crypto industry counters that these restrictions are clearly anti-competitive and hinder innovation.

Tim Scott pointed out that while stablecoin yield issues are the most prominent, they are not the only obstacles. Negotiations also involve the scope of regulation, decentralized finance (DeFi) rules, and legislative ethical frameworks. He noted that progress has been significant over the past month, with many issues gradually narrowing differences.

Legislatively, since the bill involves multiple regulatory agencies, it must be reviewed jointly by the Senate Banking Committee and the Agriculture Committee. The Agriculture Committee has advanced related texts in January this year, while the Banking Committee had previously delayed discussions, slowing the overall process.

Market analysts believe that reaching an agreement on the stablecoin regulatory framework would provide clearer policy expectations for mainstream assets like Bitcoin and Ethereum, and could have a profound impact on the stablecoin market structure and liquidity landscape. Currently, U.S. crypto legislation is at a critical juncture, and policy directions are closely watched.