US Senate Nears March Deadline: Stablecoin Yield Rules in Focus for Legislation

The US Senate is targeting late March to advance a crypto market structure bill through committee review, as obstacles to legislation gradually dissipate, though the timeline remains uncertain. Even if the committee passes the bill, it's only the first step, far from becoming law. Senator Thom Tillis is seen as a key swing vote, and his position will directly influence the final version of the bill. According to CoinGape, the prospect of reviewing the CLARITY Act is prompting all parties to focus on key provisions that may affect Tillis's support, particularly those involving stablecoin yields, regulatory responsibilities, and the protection of decentralized finance (DeFi News) developers.

The current legislative game revolves around three major issues: first, the division of regulatory responsibilities between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC); second, how to provide clear legal exemptions for non-custodial developers and open-source protocols, avoiding their regulation as intermediaries; and third, whether stablecoins should be allowed to pay yields to users. According to Decrypt and Forbes, Coinbase CEO Brian Armstrong has publicly withdrawn his support for the current draft, arguing that its restrictions on stablecoin yields and suppression of the DeFi News ecosystem would lead to a worse market environment than the status quo. Supporters believe that as long as the focus remains on core operating rules and avoids excessive expansion of power, there is still an opportunity to reach a viable framework this year. Patrick White, Executive Director of the President's Digital Asset Advisory Council, said, "A crypto market structure bill will eventually be passed; the only question is when."

Market dynamics further highlight the urgency. According to Cointelegraph, despite the debate in Washington over the legality of stablecoin yields, weekly net inflows of stablecoins have rebounded, reflecting strong market demand for yield mechanisms and the potential risks of regulatory ambiguity. If the bill successfully passes committee review, it will initially establish regulatory responsibilities and information disclosure baselines. While it won't resolve all definitional disputes, it is expected to reduce legal uncertainty for stablecoin issuers and trading platforms, boosting institutional confidence. If the review is delayed, negotiations will continue to focus on yield authority, regulatory boundaries, and developer protection, pushing for a streamlined bill that strengthens due process. If the review is stalled for a long time, the current regulatory landscape dominated by individual enforcement and fragmented guidance will continue, and the conflict between the banking system and crypto-native reward mechanisms will persist until Congress restarts the legislative process.