Overview
- The Senate Banking Committee has not set a markup, and the likeliest window has shifted to May as banks push to change limits on paying interest-like returns on stablecoin balances and the panel juggles a Federal Reserve chair confirmation.
- The White House backs a compromise that blocks passive yield on idle stablecoin holdings but allows narrowly defined rewards tied to use, supported by a Council of Economic Advisers report that estimates only a 0.02% boost to bank lending from a ban and a net consumer cost.
- The House already passed the bill with broad bipartisan support, and Coinbase reversed earlier opposition to now support the measure, removing a major industry roadblock.
- Committee leaders say timing remains the main hurdle, with Chairman Tim Scott noting no fixed date and citing unresolved issues such as the stablecoin reward rules, protections for DeFi developers, and internal Republican alignment.
- The banking lobby warns of massive deposit flight, yet the White House’s crypto lead publicly criticized that claim and a Moody’s analyst said near-term bank risk from stablecoins looks limited given today’s payment options and the current ban on yield.