Crypto exchange Coinbase Global Inc. announced a compromise in the US Senate on yielding interest on stablecoins. The agreement removes a key obstacle that had been blocking passage of a bill to structure the crypto market.
At the center of the dispute was the practice of paying custody rewards on digital assets. The traditional banking sector actively lobbied to ban such payments, fearing a mass liquidity outflow from ordinary deposits into higher‑yielding crypto products.
Deal terms
Under the new arrangements, crypto platforms will keep the right to offer yield to customers, but the rules governing how those yields are paid will be tightened considerably in line with banking safety standards. Coinbase Chief Policy Officer Farhad Shirzad stressed that the deal allows users to receive bonuses for “genuine network usage” without turning stablecoins into direct analogs of bank deposits.
Regulatory consequences
Breaking the impasse paves the way for a vote in the Senate Banking Committee. The bill is intended to clarify the allocation of authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). A clear jurisdictional split is expected to reduce regulatory pressure on the industry that has persisted for several years.
Analysts view the compromise as recognition of the growing role of digital assets in the US financial system, with lawmakers attempting to protect Wall Street’s interests while not blocking technological development.
