Tillis and Alsobrooks Reach Stablecoin Yield Deal Ahead of Crypto Markup
Sens. Thom Tillis and Angela Alsobrooks have finalized a compromise to restrict stablecoin yield and rewards, a major development for US crypto legislation as the Senate looks toward a markup in May. The deal bars rewards considered “economically or functionally equivalent” to deposit interest.
Transaction rewards such as cashback remain permitted, and staking and balance-based rewards can continue if they do not resemble yield. The text also includes anti-evasion language and allows future administrations to tighten or loosen the rules.
From the sources (10 posts)
@brian_armstrongMark it up
@wublockchainDeal reached on stablecoin yield provision, clearing path for US crypto bill According to Bloomberg, a deal has been reached on a key stablecoin yield provision that had stalled US crypto legislation. The dispute centered on whether exchan
@brendanpedersenCoinbase official gives Tillis-Alsobrooks a pretty strong thumbs up here, saying the compromise preserves the ability for crypto customers to earn rewards >>>
@eleanorterrett🚨SCOOP: Hearing from industry sources that stablecoin yield compromise text is imminent and could drop as soon as today. Reaching out to @SenThomTillis and @Sen_Alsobrooks offices for comment.
@eleanorterrett🚨JUST IN: Yep. Here’s the text given to @PunchbowlNews. ⬇️⬇️⬇️
@brendanpedersenSCOOP: Sens. Tillis and Alsobrooks have finalized a compromise on stablecoin yield. Punchbowl News has the text - bans rewards that are “economically or functionally equivalent” to deposit interest - balances *can* be used for rewards if
@degeneratenewsNEW: @EleanorTerrett IS "HEARING FROM INDUSTRY SOURCES THAT STABLECOIN YIELD COMPROMISE TEXT IS IMMINENT AND COULD DROP AS SOON AS TODAY"
@brendanpedersenHere's the heart of the Tillis-Alsobrooks compromise. Transaction rewards (cashback etc) = good. Deposit interest-like = bad Loyalty programs, subscription services = not good enough if they resemble yield But if not yield, crypto h
@brendanpedersenHere's the second half of the Tillis-Alsobrooks compromise. Several activities are spelled out as permissible including staking and balance-based rewards (if they don't resemble yield) There's also a strong anti-evasion language. Future a
@punchbowlnewsFirst in the Vault: Sens. Thom Tillis and Angela Alsobrooks have finalized a compromise to restrict stablecoin yield and rewards, a major development as the Senate looks toward a crypto markup in May. Plus, the Punch Power Matrix: https://