Key content

Both the cryptocurrency industry and the banking industry are expressing dissatisfaction with the stablecoin yield-related provisions of the cryptocurrency market structure bill being promoted in the U.S. Senate. According to related industry reports, the 'principle agreement' revealed to industry representatives on March 23-24 did not satisfy both parties.

Why is this important?

This agreement came as Senator Cynthia Loomis (R-Wyoming) announced a bill revision hearing (markup) in late April. This is the first concrete move by the U.S. Congress to establish a comprehensive regulatory framework for the cryptocurrency market, and is expected to serve as a touchstone to gauge the direction of future global cryptocurrency regulation.

The bipartisan agreement, announced by Senators Angela Alsobrooks (D-Md.) and Thom Tillis (R-North Carolina), was reviewed early last week when cryptocurrency industry representatives met with congressional aides on Monday and banking industry representatives met with congressional aides on Tuesday.

Industry Concerns

There are two main concerns known to date. First, it is likely that regulators will be required to create new rules about permissible activities. Second, restrictions on stablecoin revenue balances may be included.

According to industry sources, it is unlikely that the agreement will be significantly revised, but some technical adjustments may be made. Nevertheless, it is said that movements to suggest alternatives are underway in the industry. However, it is unclear how much this alternative will be reflected.

Future schedule

The U.S. Congress is scheduled to go into a two-week Easter recess starting this week. However, there is a possibility that the schedule may change due to budget issues at the Department of Homeland Security. The full text of the agreement is expected to be made public this week, and full-scale discussion is expected to take place at a bill revision hearing scheduled for late April.