Overview
- The newly released Senate draft permits activity‑based stablecoin incentives but prohibits yield paid solely for holding payment stablecoins.
- Coinbase has warned it may pull support if restrictions on stablecoin rewards extend beyond disclosure requirements, highlighting a key industry fault line.
- Banking trade groups, including the American Bankers Association, are pressing for tighter curbs on third‑party rewards, citing risks to bank deposits and community lending.
- The draft introduces a DeFi oversight section and retains some protections for non‑custodial developers, though reviewers say the language is softer than earlier proposals.
- The framework advances a split in agency roles by giving the CFTC primary oversight of spot digital commodity markets while the SEC remains responsible for digital asset securities, with final alignment and timing still uncertain.