Galaxy Research Head: Stablecoin Yield Terms Hinder Crypto Market Structure Bill, Senate Hearing May Restart in Late January

According to a ChainCatcher report, Alex Thorn, head of research at Galaxy, posted on the X platform that although U.S. Senate Banking Committee Chair Tim Scott has not yet announced a new hearing date, the earliest the Banking Committee could reschedule its revised hearing is the week of January 26–30, as the Senate will be in recess next week. Previously, the Senate Agriculture Committee, which oversees CFTC-related matters, also postponed its revised hearing to January 27. Earlier, Tim Scott had already announced the postponement of a hearing on the crypto market structure bill. It is understood that stablecoin yield issues are a key point of contention in the negotiations. Banking lobbying groups are actively pushing for restrictions on stablecoin rewards, fearing that interest-bearing stablecoins could draw away bank deposits and destabilize the banking system. A compromise proposal put forward to gain legislative support was ultimately deemed unacceptable by the stablecoin industry. Some believe the issue is critical to their survival. Other unresolved issues include restrictions on DeFi and illicit activities, as well as limitations on innovations in tokenized securities.