Senate Releases Stablecoin Bill Text Amid Intense Negotiations

The U.S. Senate released a 278-page bipartisan crypto market structure bill on January 13, following intensive negotiations among Republicans, Democrats, and industry stakeholders in Washington.

This bill could reshape the crypto landscape by granting banks a potential advantage in stablecoin yield debates, affecting non-bank crypto firms if provisions remain.

Senate Text Imposes New Stablecoin Reward Limitations

Recent efforts by Senators, including John Boozman and Cory Booker, resulted in a comprehensive crypto market structure bill. The text proposes specific restrictions on stablecoin rewards, permitting them only through active engagement in the crypto ecosystem.

Stablecoins may see transformation because of these new regulations, primarily affecting how users earn rewards. The incentive system will now favor banks and institutions with activity-based programs rather than passive balances.

The crypto industry showed mixed responses. The Bank Policy Institute expressed satisfaction, noting reduced risks related to unregulated crypto lending. Key figures like Angela Alsobrooks emphasized enhancing security for crypto transactions.

Bitcoin Holds Strong Amid New Regulatory Proposals

Did you know? The introduction of activity-based rewards in stablecoin markets could reshape the competitive landscape between banks and crypto firms.

Bitcoin (BTC) currently trades at $91,776.78 with a market capitalization of $1.83 trillion. Its dominance stands at 58.67%, while its 24-hour trading volume shows a 41.56% change, at $36.51 billion. Recent price trends reveal a 0.26% 24-hour drop, according to CoinMarketCap.

Experts from Coincu project that while stablecoins will undergo regulatory changes, the emphasis on activity-based rewards could stimulate a shift towards safer crypto practices. Historical trends suggest a balance between innovation and regulation will shape future market structures.