STABLE Act Advances Without Yield Option—Coinbase, Crypto Leaders Push Back

• The STABLE Act moves forward in Congress with amendments, but controversy grows over its ban on yield-bearing stablecoins, sparking debate between lawmakers and crypto industry leaders
• Coinbase CEO Brian Armstrong argues that stablecoin issuers should be allowed to share interest with consumers, while Rep. French Hill states there is no consensus on the issue
• The bill’s final structure could shape stablecoin adoption in the U.S., with industry leaders pushing for changes and policymakers weighing financial stability against innovation

The STABLE Act, (Stablecoin Transparency and Accountability for a Better Ledger Economy Act), is a proposed U.S. legislation aimed at overseeing stablecoin issuance, establishing a clear oversight on Dollar-pegged digital assets, and ensuring that their operations are on par with federal and state lawmaking. 

The bill, initially introduced by representatives Bryan Steil and French Hill, is moving forward with new amendments in Congress at the House Financial Services Committee. As the voting date nears, an important debate is being made about the bill’s veto of yield-bearing stablecoins for consumers. 

This means that stablecoin holders would not be able to earn interest on their assets, a restriction that critics argue favors traditional banks over crypto firms. Over the last two days, industry leaders like Coinbase CEO Brian Armstrong have been pushing for new legislation to allow stablecoin owners to earn interest from their holdings.

Amended Bill Moves to Committee Markup

Earlier today, the House Financial Services Committee updated the bill's Amendment in the Nature of a Substitute (ANS), incorporating recent modifications ahead of tomorrow’s legislative markup. The revised bill continues to bar stablecoin issuers from offering the yield to consumers, a restriction critics argue benefits banks at the expense of crypto innovation.

Industry Calls for Yield-Based Policies

Coinbase CEO Brian Armstrong voiced concerns, emphasizing that stablecoin issuers should have the same ability as banks to share interest with consumers. “The government shouldn’t put its thumb on the scale to benefit one industry over another,” Armstrong stated, advocating for a free-market approach in an X post.

This position is echoed by other crypto firms, which argue that excluding yield options makes stablecoins less competitive against traditional finance. Critics warn that, instead of fostering financial innovation, the STABLE Act risks reinforcing existing banking models—offering no significant advantage to digital assets beyond blockchain infrastructure.

Lawmakers Respond With Uncertainty

During a briefing, Rep. French Hill, co-sponsor of the bill, acknowledged industry concerns but clarified that Congress lacks consensus on allowing stablecoins to pay interest. “I hear the point of view, but I don't think that there's agreement among the parties or the houses,” Hill explained, as reported by Eleanor Terrett.

With regulatory agencies like the SEC and CFTC providing input on stablecoin oversight, policymakers appear cautious about altering the financial landscape too drastically. However, crypto proponents argue that failing to modernize the STABLE Act could prevent stablecoins from realizing their full economic potential.

What Comes Next?

The Financial Services Committee is set to mark up the revised STABLE Act tomorrow, and its final structure could shape stablecoin adoption across the U.S. If yield-bearing stablecoins remain prohibited, industry leaders may lobby for further changes, setting the stage for future legislative battles over stablecoin regulation.

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