Galaxy Research Director analyzes US crypto bill delay: Stablecoin yields become the main point of contention

Deep Tide TechFlow News, January 17 — Galaxy Digital’s research head Alex Thorn posted on his social media analyzing the reasons behind the U.S. Senate Banking Committee’s delay in scheduling the markup for the Market Structure Bill. According to Thorn’s analysis, although all parties have largely reached an agreement on the core issues of market structure, there are still “narrow but deep” disagreements on key issues such as stablecoin yields.

Thorn pointed out that banking industry lobbying groups are actively pushing to restrict stablecoin yields, fearing that interest-bearing stablecoins could divert bank deposits. The draft bill had proposed a compromise allowing “activity-based rewards,” but Democrats and some Republicans still insisted on stricter restrictions, ultimately making the stablecoin industry unable to accept the proposal.

Other unresolved issues include provisions related to DeFi and illegal activities, as well as restrictions on the SEC promoting tokenized securities innovation. Although the delay provides all parties with more time to reconsider, Thorn emphasized the urgency and believes that incorporating market structure into federal law is crucial for the industry’s long-term development.