A revised market structure bill from the US Senate draws a distinct line on stablecoin rewards. The proposal eliminates yields for passive balance holding but explicitly allows incentives for user activity, setting the policy tone for Thursday’s proceedings.
Senate Banking Committee Chair Tim Scott circulated the latest bipartisan draft, a bill born from negotiation. It aims to address a core contentious point after prolonged back-and-forth involving digital asset companies and the banking sector.
The draft states that digital asset service providers cannot pay interest or yield merely for a customer holding payment stablecoins. They may, however, provide rewards linked to specific activities, such as transacting, staking, supplying liquidity, or posting collateral.
This new language reflects a balancing proposal put forward last week by Democratic Senator Angela Alsobrooks, a key negotiator. Her suggestion enables exchanges to offer yield for actions like trading, but not for maintaining an idle stablecoin account balance.
