Key insight: Lawmakers from both parties discussed concerns that weak restrictions on stablecoin rewards could displace billions from community bank lending, potentially harming small businesses, farmers, students, and homebuyers who depend on local credit availability.
Forward look: Senate Banking Committee Chairman Tim Scott, R-S.C., may push for a markup of crypto market structure legislation as soon as next week — even without full bipartisan agreement — as senators continue negotiating key provisions of the bill.
What’s at stake: The American Bankers Association and other banking groups are lobbying for stricter language to prevent stablecoin issuers from offering yield-like rewards, arguing companies are exploiting loopholes…
