Crypto Market Bill Sparks Debate Over Stablecoin Yields

The U.S. Senate Banking Committee has introduced over 130 amendments to the crypto market structure bill. These changes could reshape how digital assets are regulated in the United States.

Moreover, the amendments include a proposal to ban stablecoin yields entirely. They also aim to prevent public officials from earning profits from crypto investments. Reports from CoinDesk and Reuters confirm these updates.

Clarifying the Stablecoin Rules

The bill which is now delayed to late January 2026, aims to have the rules for digital assets more clearly. It also wants to separate securities from commodities for the regulators.

This draft builds on earlier efforts, such as the 2022 Lummis-Gillibrand Act. Lawmakers hope it will give clarity for crypto businesses and users. At the same time, some banks worry that some of the rules could create financial risks.

Impact on Stablecoins and DeFi

Banning stablecoin yields could disrupt decentralized finance (DeFi) protocols. Many DeFi platforms depend on interest-like returns to attract users. However, the bill would still allow activity-based rewards, like staking.

However some crypto users criticize the approach. They say that it favors traditional banks over blockchain innovation. Lawmakers argue that the goal is to keep investors safe and make sure the financial system stays stable.

Lobbying Battles Intensify

Furthermore, large number of proposed changes shows that lobbying is heating up. Different groups want the bill to reflect their interests. Some advocate strict regulations to reduce risk. Others try to preserve innovation in DeFi and crypto markets.

Experts say that these debates show the growing influence of crypto in mainstream finance. The final version of the bill could have lasting effects on how digital assets operate in the U.S.

What Happens Next

The Senate Banking Committee will review and vote on the amendments in the up coming weeks. If the crypto Market Bill is approved, it will move to the full Senate for debate.

Analysts say that crypto users, investors and financial institutions will keep a close eye on this. The outcome could change up the rules for digital assets and influence how Americans buy, sell and use cryptocurrencies.