Punchbowl News reports that Senators Tillis and Alsobrooks agreed on language barring stablecoin rewards that are "economically or functionally equivalent" to deposit interest before the May markup.
Punchbowl News reports that Senators Tillis and Alsobrooks have reached an agreement on stablecoin yield restrictions ahead of the CLARITY Act markup in May. The reported language would ban rewards that are "economically or functionally equivalent" to deposit interest. The measure points to a key policy divide in stablecoin legislation, where lawmakers are weighing how dollar-pegged crypto tokens should be regulated in relation to traditional banking products. Restrictions on yield are significant because they can shape whether stablecoin issuers are allowed to offer returns resembling bank interest, a feature that could affect competition with bank deposits and the design of crypto payment products.