Chairman Tim Scott, R-S.C., has announced an initial vote on May 14 for a rules-of-the-road bill aimed at regulating the crypto industry. The move comes despite opposition from banks, which argue that the proposed language limiting interest earnings on stablecoins could threaten traditional banking deposits.
The bill, which aims to establish clear guidelines for the use of stablecoins, has been met with resistance from both the banking and crypto industries. Banks have expressed concerns that the proposed language is too similar to yield-bearing products like savings accounts, while crypto companies have argued that the restrictions would limit their ability to offer rewards to users.
Senator Scott has stated his goal of securing support from all 13 Republican members on the committee, but it remains unclear whether any Democrats will vote in favor of the bill. The committee had previously been set to advance the bill in January, but concerns from both industries led to its postponement.
A compromise proposal released by Senators Thom Tillis and Angela Alsobrooks has brought some crypto companies on board, including Coinbase. However, groups representing commercial and community banks remain opposed, citing concerns that the language does not adequately protect banking deposits.