The U.S. Senate releases a 278-page crypto regulation draft, with stablecoin yields becoming the new battleground for banks and exchanges

【Coinpush】The Chairman of the U.S. Senate Banking Committee, Tim Scott, publicly released a 278-page draft framework for cryptocurrency asset regulation on Monday, planning to assign regulatory authority over digital assets to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The most attention-grabbing clause of the draft revolves around stablecoin yields. According to the draft, digital asset service providers will not be allowed to pay interest or any form of yield to users solely because they hold payment stablecoins—however, reward mechanisms for specific activities such as trading, staking, and liquidity provision will still be preserved.

This regulation has become a focal point of tension between the banking industry and the crypto sector. Banks worry that stablecoin yields will attract funds away from traditional savings accounts, while the crypto community accuses banks of using regulatory power to suppress competitors. Sources familiar with the matter say that subsequent proposals from lawmakers may introduce more aggressive amendments to further tighten the incentives for stablecoins.

Notably, the draft does not yet include moral and compliance clauses related to Trump and his family’s crypto assets, which the Democratic camp views as a “bottom line” issue in negotiations.

The draft is scheduled to be reviewed and voted on by the committee this Thursday, with the final version needing coordination with the Senate Agriculture Committee before proceeding to a full Senate vote.