- Lawmakers reach bipartisan ground on stablecoin yield rules, but industry approval remains unresolved.
- Coinbase and others push back, preparing counterproposal to protect rewards and user incentives.
- Debate continues over banking differences, regulation scope, and future policy direction under CLARITY Act.
Senator Tim Scott confirmed ongoing talks with Coinbase as lawmakers push to finalize the CLARITY Act’s stablecoin yield rules. He said Republicans and Democrats have reached common ground on yield provisions. However, industry approval remains unresolved, with stakeholders still negotiating final language behind closed doors this week.
Bipartisan Progress On Yield Debate
Scott described the yield issue as a key hurdle that lawmakers have now addressed. He said both parties aligned on how rewards should function across crypto platforms. However, he added that lawmakers must still secure support from industry participants.
Notably, Scott emphasized that discussions continue with major firms, including Coinbase. He described the process as complex, requiring careful balance between competing interests.
At the same time, he clarified differences between stablecoins and traditional banking systems. Stablecoins, he said, operate on a one-to-one backing model, unlike fractional-reserve banking.
Industry Pushback And Counterproposal
Despite progress in Congress, industry resistance has continued to build. According to journalist Eleanor Terrett, lawmakers plan to release updated legislative text next week. The draft will outline stablecoin yield and rewards provisions under discussion.
However, Coinbase and other stakeholders have raised concerns about earlier proposals. Coinbase’s Global Head of Investment Research, David Duong, said industry leaders are preparing a coordinated counterproposal.
He explained that the proposal aims to protect customers while maintaining sustainable reward structures. These discussions follow dissatisfaction with terms shared during recent Capitol Hill meetings.
Ongoing Debate And Policy Questions
Meanwhile, broader policy concerns continue to shape negotiations. White House advisor Patrick Witt questioned how future administrations might approach stablecoin rewards and digital asset rules.
He also raised issues around developer protections and the classification of digital assets. These topics remain part of the wider regulatory debate tied to the CLARITY Act.
Scott reiterated that all parties remain engaged in discussions. He noted that banks and crypto firms continue to present opposing views on rewards structures. However, lawmakers continue refining the language as talks progress toward a final agreement.
