Industry representatives from both the crypto and banking sectors have reviewed proposed language in a forthcoming crypto market structure bill that addresses stablecoin yield. The draft text was shared with crypto representatives on Monday and banking representatives on Tuesday of the week of March 23. The language stems from an agreement-in-principle announced by Senator Angela Alsobrooks (D-Md.) and Senator Thom Tillis (R-N.C.), and has not yet been released to the general public, though it is expected to become available for broader review shortly.
Reaction to the proposed language has been largely negative across both industries. Concerns center on two main issues: the possibility that the draft text would require regulators to develop entirely new rules around permissible activity, and the way it could place restrictions on stablecoin yield balances. Online discussion, particularly on the platform X, reflected significant dissatisfaction with the direction of the language.
Despite the criticism, major revisions to the text are considered unlikely. One person familiar with the matter indicated that only minor changes should be expected, with many of those being technical in nature rather than substantive. The core framework of the agreement-in-principle is expected to remain largely intact as the legislative process moves forward.
Industry groups nonetheless appear to be preparing some form of counterproposal in response to the language. The extent to which that counterproposal could influence the final text remains unclear, and it is uncertain how seriously lawmakers will weigh the pushback from affected sectors.
Senator Cynthia Lummis (R-Wyo.) stated earlier in March that she anticipated a markup hearing for the market structure bill in the second half of April. A markup is the stage at which lawmakers formally debate proposed amendments and language before voting on whether to advance a bill. The sharing of the draft language with industry representatives represents an early step in that process.
Progress on the bill may be affected by the congressional calendar. The United States Congress is expected to be in a two-week Easter recess, which could slow momentum. However, an ongoing dispute over funding for the Department of Homeland Security has the potential to alter those plans and bring lawmakers back into session sooner than scheduled.
Originally reported by CoinDesk.
