Galaxy Research Director: Stablecoin yields are a key issue in the negotiations of the U.S. crypto framework bill, with the next hearing potentially starting in the last week of January

Galaxy research director Alex Thorn posted on X platform that U.S. Senate Banking Committee Chairman Tim Scott has announced the postponement of the hearing on the cryptocurrency market structure bill. It is reported that the issue of stablecoin yields is a key sticking point in the negotiations, with banking lobby groups actively pushing to restrict stablecoin rewards, fearing that interest-bearing stablecoins could siphon off bank deposits and undermine the stability of the banking system. The compromise proposal put forward to gain support from lawmakers was ultimately deemed unacceptable by the stablecoin industry, with some believing that this issue is vital to their survival. Other unresolved issues include restrictions on DeFi and illegal activities, as well as limitations on tokenized securities innovation.

In addition, Alex Thorn revealed that although Tim Scott has not announced a new hearing date, the Senate will be in recess next week, meaning the earliest possible time for the Banking Committee to reconvene for the revised hearing could be the week of January 26 to 30. The Senate Agriculture Committee, which handles CFTC-related matters, has also postponed its revised hearing to January 27.