First in the Vault. Sens. Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) have finalized a compromise to restrict stablecoin yield and rewards, a major development as the Senate looks toward a crypto markup in May.
Punchbowl News has obtained the text of that agreement, which was hammered out over months of negotiations between bank and crypto advocates.
The new language introduces requirements for crypto companies to offer rewards tied to stablecoins. That includes a broad prohibition on rewards offered “in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit.”
The Tillis-Alsobrooks text also directs regulators to propose a new series of stablecoin regulations, including the development of a new stablecoin disclosure regime and a list of permissible reward activities.
