Headline: Stablecoin yield ban clouds crypto reform as Jan. 15 committee markups loom A potential push to curb stablecoin yields has injected fresh uncertainty into bipartisan negotiations over the long-awaited crypto market structure bill — and could make getting the measure across the finish line much harder if lawmakers fail to clear committee on Jan. 15. What’s happening - Reporter Sander Lutz (X) says negotiators are now open to TradFi demands to change rules around stablecoin yields during talks on the crypto bill. The development comes ahead of scheduled markups by the Senate Banking Committee and the Senate Agriculture Committee on Jan. 15. - The Banking Committee will address the bill’s SEC oversight mandate; the Agriculture Committee will handle the CFTC’s responsibilities. Both committees must advance their versions before the legislation can reach the Senate floor. Industry reaction - Galaxy CEO Mike Novogratz blasted the shift, calling it a “sad state” and accusing Congress of prioritizing “bank margins” over consumers: “Both D’s and R’s need to ask who are they serving?” - Nic Carter, partner at Castle Island Ventures, warned the sector may be better off without the bill if stablecoin rewards are restricted: “If they want to kill stablecoin yield we might as well just let the bill die.” - Bill Hughes, counsel at Consensys and an attendee of the meetings, struck a more optimistic tone despite the risks: “For what it’s worth, I left the call more bullish than I had been previously. We are close. Pitfalls, for sure. But closer than we’ve ever been. And smart people calling the game. I’m optimistic.” Political dynamics and stakes - The bill is sponsored by Republicans but needs Democratic backing to pass the Banking Committee and reach the Senate floor. Alex Thorn, Head of Research at Galaxy Research, said the Banking Committee will likely need 7–10 Democrats to pass its vote; meanwhile, the full Senate would require roughly 60 votes to overcome procedural hurdles and move to final passage. - Key flashpoints in the Banking Committee include: rules on stablecoin yields, DeFi provisions, and proposed ethics standards that would bar President Donald Trump’s family from participating in the crypto sector. - Senate Banking Chair Tim Scott (R-SC) has urged moving the bill forward after “good-faith, bipartisan negotiations.” What a failure would mean - Missing the Jan. 15 committee markups won’t immediately kill the reform effort, but analysts warn it would dent market sentiment and make another committee push in 2026 far less likely. Thorn noted that “crowded congressional calendars and looming midterm elections” could make a second run in 2026 highly uncertain. Bottom line - Negotiators say they are close, but stablecoin yield rules remain a major sticking point. With both industry leaders and policymakers staking out firm positions, the outcome of the Jan. 15 markups could determine whether this long-sought crypto framework moves forward — or stalls for years. Disclaimer: AMBCrypto's content is informational and not investment advice. Trading, buying, or selling cryptocurrencies carries high risk; readers should do their own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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