WASHINGTON–Over the opposition of groups that include America’s Credit Unions and the Defense Credit Union Council, new legislation has been introduced in the Senate that could allow digital asset companies to continue offering rewards to stablecoin holders.
The Senate Banking Committee introduced a “manager’s amendment” before a markup meeting scheduled for Thursday.
The legislation is designed to “establish clear rules of the road for digital assets, all while protecting Main Street retail investors,” the committee’s Republicans said in a news release.
Some Exemptions
PYMNTS reported that the proposal includes language that seems to bar crypto exchanges from offering rewards tied to stablecoin holdings. However, the bill also lists some activities that would be exempt from that restriction, including “membership or participation in a loyalty, promotional, subscription or incentive program,” the report added.
As the CU Daily reported here, a coalition of eight trade groups, including ACU and DCUC, said in a letter to Capitol Hill that “any kind of compensation to stablecoin holders, including advertised yields, promotional rewards, or interest-like payments, threaten to drain deposits from regulated institutions, constricting the credit that fuels communities across our great nation.”
The letter also highlights Treasury estimates that show $6.6 trillion in deposits could be at risk with such incentives.
