While there have been multiple reports regarding horse trading related to the crypto infrastructure legislation, at this moment, the Senate Banking Committee still has a markup hearing tomorrow, January 15th, at 10AM ET. Reports emerged yesterday of dozens of amendments to the bill as members seek to have their say and constituents seek to alter it to their benefit.
One of the biggest issues is stablecoin yield. Incumbent banks are terrified of a service that allows stablecoin holders to earn interest, as it could destroy the traditional banking model. As it stands now, direct yield is not allowed, but there may be a way platforms could work around the issue to generate “rewards.” Crypto industry insiders are lambasting traditional banks for seeking to protect their business by regulating away competition. As banks have a highly effective lobbying history, members are swayed by predictions that big and old banks may go away if they lose deposit holdings to digital asset platforms.
While the Senate Banking Committee is on track, the Senate Agriculture Committee has pushed the hearing back to January 27th. Their legislative text is scheduled to be released on January 21st. As the Senate Agriculture Committee oversees commodities, its participation is key to the legislation’s passage.
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