Banks and Crypto Backers Tussle as Senators Eye Stablecoin Bill

Banking groups are floating last-minute changes to a compromise on stablecoin yield as a key Senate panel begins considering a landmark digital asset bill.

The proposed changes would tweak the compromise brokered by Senators Thom Tillis, a Republican, and Angela Alsobrooks, a Democrat, on stablecoin rewards earlier this month in the hopes of moving forward legislation long sought by the crypto industry to create clear rules for the digital asset space.

A set of banking advocacy groups, including the American Banking Association and the Consumer Bankers Association, released text on Friday that would completely limit stablecoin issuers from ...