The U.S. Senate's crypto market structure bill has reached an impasse due to disagreements over stablecoin yield provisions. According to PANews, representatives from the banking industry submitted a document titled 'Principles for Prohibiting Yield and Interest' during a meeting at the White House this week, advocating for a complete ban on stablecoin yields, arguing that such yields threaten the core position of bank deposit businesses. On Friday, the Chamber of Digital Commerce released a position paper defending the Senate Banking Committee's draft, which allows for rewards under specific circumstances. The organization expressed willingness to accept a two-year study on stablecoin impacts on deposits, provided it does not lead to automatic rule-making.
Cody Carbone, CEO of the Chamber of Digital Commerce, stated that the industry is prepared to forgo static holding yields that closely resemble bank deposits but should retain reward mechanisms related to customer transactions and on-chain activities, emphasizing this as a significant concession.
The White House has requested both parties to reach a compromise by the end of the month. Patrick Witt, U.S. President Donald Trump's advisor on crypto affairs, mentioned that further talks might be scheduled next week, stressing the need to 'precisely address the narrow issue of idle yields,' as it should fall under the scope of the already passed GENIUS Act.