On March 23 and 24, industry representatives saw the proposed yield language in the Crypto Market Structure Bill. The internet – at least X (formerly Twitter) – was upset, but that may not matter much.
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The story
We* have new language describing how the Crypto Market Structure Bill could address stable coin yield.
*Only some people have seen the language, although it should be made public and revised afterwards.
Why it matters
Sen. Cynthia Lummis (R-Wyo.) said earlier this month that she expected a markup of the bill on market structure — the hearing in which lawmakers debate amendments and language before voting on a bill — in the second half of April. Lawmakers took the first step towards this increase with an agreement on legislation on the structure of the crypto market.
Break it down
Crypto industry and banking industry representatives saw the proposed “agreement in principle” announced last week by Senators Angela Alsobrooks (D-Md.) and Thom Tillis (R-N.C.) early last week, with crypto representatives meeting with legislative staff on Monday and banking industry representatives with staff on Tuesday.
No one seems particularly happy with this deal. The text has not yet been made public, but it is expected to be made public next week. Concerns range from whether the proposed text would call on regulators to write new rules regarding permitted activities to how it could restrict stablecoin yield balances.
The language is unlikely to see major revisions, although one person familiar said they expected minor changes. Most of the necessary changes are just technical adjustments, they said.
Still, industry interests appear to be moving toward presenting some sort of counterproposal on the language. It remains to be seen how far this will go.
This week
- Congress is expected to be on a two-week Easter recess, although the ongoing fight over funding for the Department of Homeland Security could change that.
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See you next week!
