Tillis, Alsobrooks Ban Interest‑Like Stablecoin Rewards
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- Sen. Thom Tillis reached a compromise with Maryland Gov. Angela Alsobrooks to restrict stablecoin yield and rewards.
- Angela Alsobrooks helped craft language that broadly prohibits rewards that are economically or functionally equivalent to interest on bank deposits.
- The Senate looks toward a crypto markup in May, positioning the Tillis‑Alsobrooks compromise as a timely development.
- Punchbowl News obtained the text of the agreement after months of negotiations between bank and crypto advocates.
Why it matters: The agreement curtails crypto firms’ ability to market interest‑like stablecoin rewards, forcing them to redesign incentive structures while giving regulators a clear mandate to create a disclosure regime and permissible reward list, reshaping the stablecoin market and tightening oversight before the upcoming Senate crypto markup.
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