Stablecoin Yield Controversy Stalls Legislative Process: US Crypto Regulation Hits Another Roadblock as Industry Frustration Grows

March 28 — Divergence in the U.S. crypto industry over stablecoin yields remains a key bottleneck slowing overall legislative progress. Multiple sources note that while draft language for related provisions has circulated in Congress recently, negotiations have yet to yield a substantive breakthrough. Jason Somensatto, Policy Director at Coin Center, called stablecoin yields the "primary obstacle" to advancing the current crypto market structure bill, adding that consensus on other provisions could quickly emerge if this issue is resolved. The core dispute centers on whether stablecoins should be allowed to offer yields to holders. The previously passed GENIUS Act already bars issuers from directly paying interest to users but does not restrict rewards from third-party platforms. The banking industry fears this will trigger deposit flight, while the crypto sector argues restricting yields would stifle innovation. Coinbase has faced criticism for objecting to certain provisions, with some accusing it of "hindering the bill’s progress." CEO Brian Armstrong previously pushed back against designs that could "stifle stablecoin yields" and raised concerns about regulatory clarity and DeFi-related provisions. The White House has convened banks and crypto industry stakeholders for multiple discussions, but no consensus has been reached. Industry insiders say multiple rounds of talks have produced no results; if delays persist, the bill may not even reach the Senate committee voting stage, risking "failure." Still, the market holds some hope for progress. Coinbase has indicated the industry is preparing to jointly propose alternative solutions to resolve the yield provision dispute in the coming weeks.