Senate Banking Committee Stalls Crypto Overhauly as Stablecoin Yields Spark Lobbying War

Crypto customers may be blocked from receiving rewards on stablecoin balances. Bank lobbyists are fighting to prevent these yields from being generated for customers. This effort follows a draft of compromise text developed by Sens. Thom Tillis and Angela Alsobrooks. The Senate Banking Committee cannot advance a larger market structure overhaul of crypto regulation until the issue of stablecoin yield is resolved. The FDIC board of directors voted on Tuesday to advance a proposal establishing parameters for how regulated depository institutions issue and manage stablecoins under the GENIUS Act.