Galaxy Research Director: Stablecoin yields are a key sticking point in negotiations for the US crypto infrastructure bill; the next hearing may begin in the last week of January.

Galaxy Research Director Alex Thorn posted on the X platform that Senate Banking Committee Chairman Tim Scott has announced a postponement of the hearing on the Crypto Market Structure Act. It is understood that stablecoin yields are a key sticking point in the negotiations. Bank lobbying groups have actively pushed 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. Furthermore, Thorn revealed that although Tim Scott has not yet announced a new hearing date, the earliest the Banking 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.