U.S. Senate Moves to Ban Interest on Stablecoins Held Solely for Investment, with Possible Delays

On the 13th, the U.S. Senate Banking Committee unveiled the 'Manager's Amendment' to the cryptocurrency market structure bill. After months of bipartisan discussions, the amendment stipulates that earning interest merely from holding stablecoins is prohibited, while reward programs linked to trading activities are permitted.

One of the major points of contention surrounding this bill is the treatment of stablecoin rewards. The banking industry, concerned about the outflow of deposits, has called for stricter regulations, whereas the cryptocurrency industry argues that reward programs are essential for maintaining competitiveness in the payment market.

In response to these conflicts, the current amendment prohibits interest on holdings alone but allows rewards linked to transaction activities as a compromise...