On the eve of the U.S. Senate's review of the digital asset bill, the banking industry proposed a compromise plan to amend the stablecoin yield provisions

According to Bloomberg, on the eve of the Senate Banking Committee's upcoming review of the digital asset bill, banking groups are proposing last-minute modifications to the compromise on stablecoin yields, aiming to completely prohibit stablecoin issuers from offering any form of rewards, rather than the previously allowed model of "users receiving rewards when actively using stablecoins."

Six banking lobbying groups, including the American Bankers Association, stated in a letter that the exception clause in the senators' compromise would "harm deposits." The crypto industry quickly countered, with Coinbase Chief Legal Officer Paul Grewal stating on the X platform that the banking industry's proposal is not a "narrow adjustment," but rather aimed at "stifling competition." Senators Angela Alsobrooks and Thom Tillis, who previously facilitated the compromise, issued a joint statement expressing disagreement with the banking industry's position, emphasizing that the compromise also allows crypto companies to provide other forms of customer rewards, and most importantly, provides a bipartisan path for the passage of the CLARITY Act.