Coinbase reaches compromise with banks on stablecoin yield terms, potentially advancing US Senate crypto legislation.

CoinFeed reported on May 2nd, citing Bloomberg, that Coinbase has reached an agreement on key disagreements regarding stablecoin holding rewards, clearing a significant hurdle for the US Senate to push forward a crypto market structure bill. Previously, traditional banks lobbied to restrict or prohibit exchanges from issuing rewards to customers holding stablecoins, raising concerns about funds flowing out of bank deposits. Coinbase Chief Policy Officer Faryar Shirzad stated that the banks ultimately received more restrictions, but the space for users to earn rewards through crypto platforms and networks based on real-world use cases was preserved. This agreement is expected to push for a vote on the "Clarity Act" before the Senate Banking Committee, which would further clarify the regulatory boundaries between the SEC and CFTC in the crypto asset space.