US Crypto Bill FIT21 Release Delayed, New Stablecoin Yield Compromise Emerges as Negotiation Focus | YayaNews

US Crypto Market Regulation Bill Faces Another Delay, Stablecoin Yield Proposal Becomes This Week's Focus

According to multiple sources, the official release of the highly anticipated US "Financial Innovation and Technology for the 21st Century Act" (FIT21) has been postponed. Simultaneously, a revised compromise proposal regarding the mechanism for distributing stablecoin yields has become the central topic of discussion between the industry and lawmakers this week. This development once again highlights the complexity and political maneuvering within the US cryptocurrency regulatory legislative process, with the market closely watching its potential impact on the future industry landscape.

Core Bill Release Delayed, Legislative Process Faces Challenges

The FIT21 bill is seen as key legislation through which the US Congress is attempting to establish a comprehensive regulatory framework for the digital asset market. The bill aims to clarify the jurisdictional division between the US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) over cryptocurrencies and to establish operational rules for market participants such as exchanges and custodians. Previously, the bill had passed the House of Representatives with bipartisan support, raising high market expectations.

However, the release of the final version of the bill text, originally scheduled for the near term, has been delayed. Analysts point out that the delay may stem from several factors: First, the legislative agenda is affected by the political cycle of an election year, narrowing the window for advancing complex bills. Second, key details within the bill, particularly regarding the definition of "decentralization," specific consumer protection measures, and enforcement authority, still require deeper coordination and compromise among the Senate, executive branch agencies (such as the Treasury Department and SEC), and industry stakeholders.

This delay indicates that while there is a consensus between the two major US parties on the general direction of "needing regulation," significant differences remain regarding the specific regulatory path and its stringency. The final enactment of the bill still needs to overcome numerous procedural hurdles.

Stablecoin Yield Compromise Proposal Emerges, Becomes Core of This Week's Negotiations

While the advancement of the overall bill is encountering obstacles, a more specific and urgent issue—stablecoin regulation, particularly whether stablecoin holders can receive yields—has become the focus of legislative negotiations this week. According to reports, relevant lawmakers have put forward a revised compromise proposal attempting to find a balance between prohibitive clauses and industry demands.

Previously, some legislative drafts had leaned towards prohibiting or strictly restricting fiat-collateralized stablecoins (such as USDC, USDP) from paying interest or yields to their holders, primarily over concerns that this could transform them into unlicensed banking products, thereby triggering systemic risks and impacting the traditional financial system.

The new compromise proposal is said to propose a more nuanced framework. Possible approaches include: allowing specific entities under strict supervision (such as regulated trust companies or state-licensed entities) to issue yield-bearing stablecoins, but requiring them to meet extremely high capital reserve, asset segregation, and disclosure requirements; or directly linking the permission to distribute yields to the type of license held by the issuer and the category of collateral assets. The core purpose is to build sufficient risk firewalls while acknowledging market demand and space for innovation.

This development is being closely watched by stablecoin issuers and some industry institutions. Clear regulatory rules allowing reasonable yields would significantly impact the competitiveness and market structure of stablecoin products. If the final proposal is too stringent, it could stifle innovation and push related business to more regulation-friendly jurisdictions.

Market Impact and Industry Outlook

The twists and turns in the regulatory process directly affect market sentiment. On one hand, a clear regulatory framework is the cornerstone for the industry's mainstream adoption in the long term, capable of attracting traditional institutional capital to enter with greater confidence. If the FIT21 bill can pass, it would provide the market with crucial legal certainty. On the other hand, short-term delays and uncertainty over key provisions could lead to increased market wait-and-see sentiment.

Specifically in the stablecoin sector, if a balanced solution on yields can be reached, it could have profound effects: First, it could alter the competitive landscape of the stablecoin market, providing compliant issuers with new product tools. Second, it could spur the development of new DeFi (Decentralized Finance) and traditional finance fusion products based on stablecoins. However, if the compromise fails and a stance of strict prohibition returns, it could force significant adjustments to existing business models.

Looking at the broader picture, US crypto legislation is at a critical crossroads. This week's discussions surrounding stablecoin yields can be seen as a microcosm testing ground for the overall regulatory approach. The outcome will not only determine the future shape of a stablecoin market worth hundreds of billions, if not trillions, of dollars but could also set a precedent for the regulation of other crypto asset classes. Industry participants are actively lobbying, hoping to ensure that the final regulations can manage risks without stifling technological innovation and economic growth potential.

As the election approaches, the legislative window is becoming increasingly tight. The market generally expects that whether for the FIT21 bill or a separate stablecoin bill, negotiations in the coming weeks will be crucial for achieving a breakthrough before the end of the current Congressional term.

Risk Warning

The above content is based on current public information and analysis, for reference only, and does not constitute any investment advice. The cryptocurrency market is highly volatile, regulatory policies remain unclear, and there are significant risks. Before making any decisions, investors should conduct independent in-depth research and fully consider their own risk tolerance.