The issue of stablecoin yield distribution has emerged as the biggest point of contention. Centered on this core dispute, representatives from the banking and crypto industries took opposing positions at a White House-convened meeting, leading to a stalemate in negotiations.
Legislative Progress
The US crypto market regulatory framework is approaching a pivotal moment. Recently, Senate Agriculture Committee Chair John Boozman made it clear that he is "very determined" that consensus on the cryptocurrency market structure bill could be reached this year.
The bill aims to establish a national regulatory structure for digital assets, with primary oversight by the Commodity Futures Trading Commission (CFTC) for this emerging industry.
The timeline is now set: the final version of the market structure bill could be submitted to the President for signature as early as Memorial Day. White House advisor Patrick Witt revealed that after the passage of the Genius Act, President Trump personally designated this bill as a priority.
The legislative process has moved from the stage of broad consensus to detailed drafting, with the central goal of ensuring the bill can pass both Senate and House review.
Core Dispute Over Stablecoin Yields
Stablecoin yield distribution is now considered the "biggest point of contention" in the current legislative process. The debate focuses on whether centralized exchanges should be allowed to pay passive yields on idle stablecoin balances.
At a White House-hosted meeting in early February, representatives from the banking and crypto industries engaged in more than two hours of heated discussion on this issue.
Banking representatives strongly opposed stablecoin yield distribution, arguing that these yields are "too similar to interest payments," and noting that previous legislation had already prohibited similar practices.
The crypto industry, on the other hand, sees yield distribution as a natural market behavior. Coinbase CEO Brian Armstrong even stated that if the Senate Banking Committee’s draft text included an amendment "that kills stablecoin rewards," he would be unable to support the bill.
Stablecoins are a critical component of the crypto market, and their prices have remained relatively stable amid recent market fluctuations. For example, USDC was priced at $1.0000 with a trading volume of $14,745,822,208 on February 10, according to Gate data. USDT was priced at $0.999558 with a trading volume of $95,206,121,472 on the same day.
Positions and Red Lines
On the issue of stablecoin yields, some basic consensus has already emerged. For instance, there is broad agreement to prohibit misleading practices, such as marketing stablecoins as FDIC-insured deposits.
Following the meeting, banking industry groups issued a joint statement emphasizing: "We must ensure that any legislation supports local lending to families and small businesses, which not only drives economic growth but also protects the safety and soundness of our financial system."
The crypto industry remains concerned that excessive regulation could stifle innovation. Blockchain Association CEO Summer Mersinger commented that Monday’s event was "an important step toward a bipartisan solution for digital asset market structure legislation."
The "red lines" in the legislative process are now clear. Current negotiations are focused on finding a balance between protecting financial stability and fostering innovation.
The Foundational Role of DeFi
DeFi (decentralized finance) plays a foundational role in crypto market structure legislation. Patrick McHenry stressed that without DeFi, the relevant legislation "simply cannot function."
He further pointed out that decentralization is the key reason the crypto system outperforms traditional finance in efficiency, transparency, and cost. Tokenized lending products already offer significantly lower costs than traditional securities lending.
Ethereum, as the main platform for DeFi, accounts for 58% of total deposits across the blockchain industry. Including layer-2 networks such as Base, Arbitrum, and Optimism, this share exceeds 65%.
Despite recent market volatility, Ethereum continues to lead in total value locked (TVL), with its mainnet’s largest decentralized application holding over $2.3 billion in TVL.
Global Regulatory Landscape
The establishment of the US crypto market regulatory framework is not an isolated event, but part of a global trend. The European Union’s Markets in Crypto-Assets (MiCA) regulation has already come into effect, setting clear requirements for digital asset service providers operating within the EU.
France’s financial market regulator has reminded that, under MiCA, digital asset service providers previously operating in France must obtain authorization by July 1, 2026, or cease offering services.
Meanwhile, the US Securities and Exchange Commission (SEC) is also adjusting its regulatory approach. SEC Commissioner Mark T. Uyeda stated that the SEC has stopped using enforcement as its primary means of expressing policy views, instead promoting limited pilot programs through regulatory guidance.
He specifically emphasized that SEC rules should remain technologically neutral, focus on outcomes rather than processes, and ensure appropriate investor protections.
Market Impact and Investor Strategies
The advancement of the crypto market structure bill is having a direct impact on the market. Federal Reserve Board member Christopher Waller recently pointed out that the optimism driving market gains after President Trump’s election may be fading.
As regulatory uncertainty grows, major financial firms are adjusting their risk positions for risk management, fueling market sell-offs.
The Ethereum derivatives market reflects investor concerns about further declines. The monthly futures premium for ETH over spot is about 3%, below the neutral level of 5%, indicating a general lack of optimism among Ethereum traders.
For investors, the current environment calls for greater attention to:
- The potential impact of regulatory developments on stablecoin yield models
- Adjustments major crypto platforms may make to comply with new regulations
- Arbitrage opportunities arising from regulatory differences across jurisdictions
- The adaptability of DeFi protocols within regulatory frameworks
Conclusion
Stablecoin prices on Gate demonstrate relative market stability. However, the yield distribution models behind these two key stablecoins have become the critical point of contention that will determine whether the US crypto market structure bill can pass smoothly.
The White House has set a clear deadline for all stakeholders, requiring substantive progress on technical details of legislative negotiations by the end of the month. The US crypto market regulatory framework is taking shape, and its outcome will profoundly impact the trajectory of the global digital asset market.
