The US cryptocurrency bill is stalled due to disagreements over stablecoin yields, but the two parties are still close to reaching a consensus.

2026-01-08 01:34:21

Source: Yellow Original Title: What’s Delaying the US Cryptocurrency Legislation Despite ‘Near’ Bipartisan Progress

Original Link: Senator Cynthia Lummis stated on Tuesday that after five years of obstacles—including the FTX incident, Federal Reserve opposition, and market volatility—Congress is close to passing bipartisan legislation on the structure of the cryptocurrency market.

This statement from the Wyoming Republican comes as the Senate Banking Committee plans to hold an amendment meeting on January 15, where unresolved disagreements over stablecoin yields remain.

Chairman Tim Scott of the Senate Banking Committee may push the bill forward even without a full bipartisan agreement.

What’s Happening

Senators held a meeting on Tuesday to discuss whether crypto platforms can offer stablecoin yields.

The American Bankers Association warned on Monday that allowing stablecoin yields could transfer trillions of dollars out of community bank deposits.

Last year, the Blockchain Association convened 125 crypto companies urging Congress to preserve the integrity of the stablecoin yield provisions.

Democrats are pushing for ethical standards to prevent officials from profiting from cryptocurrencies, with an estimated $620 million in assets held by Trump in crypto ventures.

Industry insiders estimate a 50% to 60% chance of approval before the November 2026 midterm elections.

Why It Matters

The legislation will end the jurisdictional uncertainty between the SEC and CFTC, which has forced companies to move overseas.

Lummis, who will retire in January 2027, listed obstacles she has overcome: non-custodial wallets, FTX, Federal Reserve hostility, market volatility, and the SAB121 veto.

The bill will establish custodial standards and compliance frameworks to enable institutional participation.

Banking industry disputes threaten to reopen the bill before regulators complete rulemaking in July 2026.

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