$ALT A proposed crypto market structure bill in the U.S. Senate has stalled because of disagreements over whether stablecoins should be allowed to generate yield. According to PANews, banking industry representatives submitted a document titled “Principles for Prohibiting Yield and Interest” at a recent White House meeting, calling for a full ban on stablecoin yields. They argue that offering yield on stablecoins could undermine traditional bank deposits.
In contrast, the Chamber of Digital Commerce released a statement supporting the draft prepared by the Senate Banking Committee, which permits certain reward mechanisms under limited conditions. The group said it would agree to a two-year study examining how stablecoins affect bank deposits, as long as the study does not automatically result in new regulations.
Cody Carbone, head of the Chamber, explained that the industry is willing to give up fixed holding yields that closely resemble traditional bank interest. However, he emphasized that rewards linked to user transactions and on-chain activity should remain, describing this compromise as a meaningful step.
The White House has urged both sides to find common ground before the end of the month. Meanwhile, crypto policy advisor Patrick Witt, who advises Donald Trump, indicated that additional discussions may take place next week. He stressed that the focus should be narrowly placed on regulating passive or “idle” yields, which he believes are already covered under the recently passed GENIUS Act.
