A newly released draft of the U.S. crypto market structure has intensified the fight between banks and the digital asset industry. Lawmakers proposed restrictions on stablecoin yield payments while expanding legal protections for broader crypto activity.

The bill attempts to create clearer rules for digital assets, exchanges, stablecoins, decentralized finance, and self-custody wallets.

However, one section has quickly become the central battleground: a proposed ban on interest or yield payments tied to payment stablecoins.

The provision would prohibit issuers and digital asset service providers from offering interest-like returns to U.S. users simply for holding payment stablecoins.

The debate has already sparked public clashes…