US senator to release draft compromise on stablecoin interest this week

U.S. Republican Senator Thom Tillis plans to release a draft compromise this week aimed at resolving the dispute over stablecoin interest provisions within a proposed crypto market structure bill known as CLARITY, The Block reported. The banking industry continues to oppose the inclusion of interest on stablecoins, citing potential risks of deposit outflows and financial system disruption. In contrast, the crypto industry, including Coinbase, argues that omitting the provision would stifle innovation. Tillis added that the current draft is incorporating feedback from both the banking and crypto sectors and remains open to further amendments. He also suggested the possibility of hosting a debate with representatives from both sides to resolve the matter.