US lawmakers resist yield-bearing on stablecoins

Source Fxstreet
  • House Financial Services Committee Chair French Hill stated that stablecoins should serve as a means of enhancing payment, not yield-bearing.
  • He added that lawmakers will continue to prohibit stablecoin interest opportunities for consumers.
  • Crypto community members expressed displeasure toward the statement, arguing that lawmakers are limiting innovation.

The US House Financial Services Committee Chair French Hill hits back at crypto industry leaders arguing for yield-bearing inclusion in stablecoin regulations. Hill stated that lawmakers view stablecoins as a payment solution, not an investment product.

Rep French Hill responds to stablecoin demands from crypto industry members

House Financial Services Committee Chair French Hill clarified that House members have no consensus on including yield-bearing for consumers in stablecoin legislations. In a briefing on Monday, Hill shared that lawmakers view stablecoins as a means of enhancing payment and not an investment product.

Hill's statement responds to recent comments from crypto community members regarding stablecoin legislation in the House and Senate. Industry leaders, including Coinbase CEO Brian Armstrong and Bitwise executive Matt Hougan, earlier appealed to the Senate and House to include provisions in their bill for consumers to earn interest on stablecoins.

"I hear the point of view, but I don't think there's consensus among the parties or the houses on having a dollar-backed payment stablecoin pay interest to the holders of that stake," said French Hill in an interview. 

The House's STABLE bill is set for a markup on Wednesday, where committee members will review, debate and propose amendments to it before it is finalized for further consideration.

Circle's Chief Strategy Officer, Dante Disparte, showed support for the swift bipartisan passage of the STABLE bill. He emphasized that the bill offers clear guidance on reserving, trust, transparency and financial crime compliance.

"The US will win when payment stablecoins that reference the dollar have a clear pathway to enter into the United States' regulatory perimeter. We urge swift and bipartisan passage of the STABLE Act," Dante stated in a Tuesday X post.

However, several crypto community members shared contrary remarks to lawmakers' decision, citing that the absence of yield-bearing would stifle innovation.

"Without yield, this isn't financial innovation — it's just banking as usual, but with a blockchain wrapper," said crypto lawyer Carlo D'Angelo.

Chris Pavlovski, CEO of RUM, also expressed dissatisfaction with the response from the House, stating that the STABLE Act is NOT America First.

"It's not even close. This is Wall Street, Coinbase & Circle first," he added in an X post.

The STABLE and GENIUS Acts bills do not mention interest for consumers holding stablecoins, stirring concerns about crypto's effectiveness.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Nvidia stock sinks 4% as Trump’s tariff plans rattle AI tradeNvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
Author  NewsBTC
Apr 01, Tue
Nvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
placeholder
Bitcoin Price Bounces Back—Can It Finally Break Resistance?Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
Author  NewsBTC
22 hours ago
Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
placeholder
Bitcoin Price Struggling but Short-Term Holders Might Be Setting the Stage for $150KBitcoin has recently displayed signs of upward momentum, trading at $85,215, marking a 2.2% increase in just the past day. Despite this short-term gain, the asset remains down by over 21.2% from its
Author  NewsBTC
17 hours ago
Bitcoin has recently displayed signs of upward momentum, trading at $85,215, marking a 2.2% increase in just the past day. Despite this short-term gain, the asset remains down by over 21.2% from its
placeholder
U.S. March Nonfarm Payroll Preview: Even If Data Aligns with Expectations, Financial Markets May Not Escape the Fate of VolatilityOn 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
Author  TradingKey
17 hours ago
On 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
placeholder
Gold price stabilizes ahead of Trump's tariffs announcement on “Liberation Day”Gold price (XAU/USD) stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory.
Author  FXStreet
16 hours ago
Gold price (XAU/USD) stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory.
goTop
quote