Galaxy Research Director: Stablecoin yields are a key sticking point in negotiations for the US crypto infrastructure bill; the next hearing may begin in the last week of January.

PANews reported on January 17th that Alex Thorn, Head of Research at Galaxy, stated on the X platform that Senator Tim Scott, Chairman of the Senate Banking Committee, has announced a postponement of the hearing on the Crypto Market Structure Act. It is understood that stablecoin yields are a key sticking point in the negotiations. Bank lobbying groups have actively pushed for restrictions on stablecoin rewards, fearing that interest-bearing stablecoins could siphon off bank deposits and undermine the stability of the banking system. Compromises proposed to gain support from lawmakers were ultimately deemed unacceptable by the stablecoin industry, with some believing the issue is a matter of survival. Other unresolved issues include restrictions on DeFi and illicit activities, as well as restrictions on tokenized securities innovation.

In addition, Alex Thorn revealed that although Tim Scott has not yet announced a new hearing date, the earliest the Banking Committee may reconvene the amendment hearings is the week of January 26-30, as the Senate is in recess next week. The Senate Agriculture Committee, which is responsible for CFTC-related matters, had previously postponed its amendment hearings to January 27.