TechFlow News, April 14: According to Decrypt, U.S. Senator Thom Tillis stated that the Senate is expected to release a compromise draft text this week regarding stablecoin yield distribution. Currently, banks and crypto firms disagree on whether cryptocurrency exchanges should be permitted to pay yields to stablecoin holders through reward programs—a dispute that has stalled progress on the Clarity Act.
A recent report by the White House Council of Economic Advisers concluded that banning stablecoin yields would have a minimal impact on small banks, increasing bank lending by only 0.02%. However, the American Bankers Association contends that this analysis underestimates the risks. Observers warn that if the draft provisions are overly restrictive, users and liquidity may shift to other jurisdictions that permit such yields.
