Stablecoin Yield Controversy Stalls Legislative Process: US Crypto Regulation Again Stuck in Deadlock, Industry Discontent Rising

On March 28, the US crypto industry continued to grapple with disagreements over stablecoin yields, becoming a core bottleneck hindering overall legislative progress. Multiple sources indicate that although Congress has recently circulated draft texts related to the relevant provisions, negotiations have yet to achieve substantial breakthroughs. Coin Center's policy director Jason Somensatto stated that the stablecoin yield issue is the "main obstacle" to advancing the current crypto market structure bill; if this issue is resolved, the remaining provisions may reach consensus quickly. The focal point of the controversy is whether stablecoins should be allowed to provide yields to holders. The previously passed GENIUS Act has prohibited issuers from directly paying interest to users but has not restricted third-party platforms from offering rewards. The banking sector is concerned that this move will divert deposits, while the crypto industry believes that limiting yields will stifle innovation. In the course of negotiations, Coinbase faced criticism for raising objections to certain provisions, being accused of "slowing down the bill's progress." Its CEO Brian Armstrong had previously opposed provisions that could potentially "kill stablecoin yields" and expressed concerns about regulatory jurisdiction and DeFi provisions. The White House has summoned banks and the crypto industry for consultations multiple times but has still not reached a consensus. Industry insiders pointed out that negotiations have gone through multiple rounds with no results, and if delays continue, the bill may not even reach the Senate committee voting stage, posing a risk of "failing to pass." Nevertheless, the market still holds a certain expectation for progress. Coinbase indicated that the industry is preparing to jointly propose an alternative solution, aiming to resolve the yield provision disagreements within the next few weeks.