US Senate Crypto Bill Advances as Stablecoin Yield Ban Clears Key Hurdle Ahead

US Senate crypto bill advances as lawmakers agree to ban passive stablecoin yield while allowing activity-based rewards.

U.S. Senate talks on crypto rules have moved forward after lawmakers reached a deal on stablecoin yield.

The agreement could help clear a major block for the crypto market structure bill. It also sets new limits on passive rewards tied to stablecoins.

Senate Deal Moves Crypto Bill Forward

The reported deal centers on rewards paid on stablecoin balances.

According to Ash Crypto, U.S. senators released finalized text on stablecoin yield. He said the text bans rewards that work like bank interest.

Bull Theory also reported that the Senate had unblocked the crypto market structure bill.

The account said the yield issue had delayed progress for months. It also linked the deal to Senators Thom Tillis and Angela Alsobrooks.

The Senate Banking Committee markup is expected in May. Ash Crypto said it could happen by the second week of May.

Bull Theory also said the committee process is now moving again. The bill is linked to wider crypto rules in the United States.

Lawmakers have been working on how to oversee exchanges, stablecoins, and digital assets. Therefore, the yield agreement became a key step for the bill.

Passive Stablecoin Rewards Face New Limits

The reported text would block some stablecoin reward programs. Crypto platforms could not pay users only for holding stablecoins.

Such payments may be treated like interest on bank deposits.

Bull Theory said the rule targets rewards that are “economically or functionally equivalent” to bank interest.

That means passive yield could face a ban. For example, a platform offering 4% for holding stablecoins may not be allowed.

However, the deal does not appear to ban all rewards. Platforms may still offer rewards tied to trading, payments, or service use.

Ash Crypto said rewards linked to platform use would still be allowed. Banks had raised concerns about stablecoin yield products.

They argued that passive rewards could pull money away from bank accounts. As a result, lawmakers focused on separating stablecoin rewards from bank-like interest.

Clarity Act Odds Rise As Markup Nears

The deal could help the Digital Asset Market Clarity Act move ahead. Bull Theory said the yield issue was the main block.

Once that issue was addressed, the bill gained a clearer path.

Prediction markets cited by Ash Crypto and Bull Theory placed the bill’s passage odds at 62%.

Bull Theory said the figure refers to a 2026 signing. The number shows growing market attention around the bill.

Bull Theory also cited Treasury Secretary Scott Bessent on a spring 2026 target. That claim was part of its report on the bill’s timeline.

Still, the next step remains the Senate Banking Committee markup. Crypto firms and banks are watching the process closely.

Exchanges want clear rules for digital asset services. Meanwhile, banks want stablecoin products kept away from deposit-style interest.

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