Galaxy Research Director: Stablecoin yield provisions become a "deadlock" in crypto structure legislation; Senate hearings to resume as early as late January.

Galaxy Research Director Alex Thorn stated in an article on the X platform that although Senate Banking Committee Chairman Tim Scott has not yet announced a new hearing date, the earliest the committee could reconvene for the revision hearings is the week of January 26-30, due to the Senate recess next week. The Senate Agriculture Committee, which handles CFTC-related matters, had previously postponed its revision hearings to January 27. Tim Scott had previously announced a postponement of the Crypto Markets Structure Act hearings. It is understood that stablecoin yields are a key sticking point in the negotiations. Bank lobbying groups are actively pushing for restrictions on stablecoin rewards, fearing that interest-bearing stablecoins could siphon off bank deposits and destabilize the banking system. Compromises proposed to gain congressional support were ultimately deemed unacceptable by the stablecoin industry, with some believing the issue is a matter of survival. Other unresolved issues include restrictions on DeFi and illicit activities, as well as restrictions on tokenized security innovation.