Stablecoin Yield Ban Draft Advances in U.S. Senate Talks

• Draft bans stablecoin yield and blocks indirect interest-like reward structures across platforms.
• Activity-based rewards allowed if they avoid economic equivalence to interest definitions.
• Industry reactions split as lawmakers push toward an April review timeline on Capitol Hill.

U.S. lawmakers are advancing a draft legislative framework that would restrict how stablecoin issuers and crypto platforms offer rewards, as industry and banking representatives gather to review the proposal. The emerging text, developed through discussions between the White House and key Senate negotiators, outlines a structured approach to limiting yield-bearing features while allowing certain activity-based incentives under defined conditions.

According to details shared by stakeholders who reviewed the draft, the proposal would prohibit digital asset service providers from offering yie…

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