TechFlow to a report by Decrypt on April 14th, US Senator Thom Tillis stated that the Senate is expected to release a draft compromise text regarding stablecoin yield distribution this week. Currently, banks and crypto companies disagree on whether to allow cryptocurrency exchanges to pay stablecoin holders yields through reward programs, a dispute that has stalled the Clarity Act's legislative process.
A recent report from the White House Council of Economic Advisers stated that banning stablecoin yields would have a minimal impact on small banks, increasing lending by only 0.02%. However, the American Banking Association believes this analysis underestimates the risks. Observers point out that if the draft regulations are too stringent, it could lead to a flow of users and liquidity to other jurisdictions that allow yields.
