Senators request hearing on digital assets market structure 

Senate Banking Committee members John Kennedy (R-La.) and Jack Reed (D-R.I.) asked the committee’s leaders to promptly schedule a hearing on digital assets market structure policy before hosting a legislative markup. 

Details: In a letter to Chairman Tim Scott (R-S.C.) and Ranking Member Elizabeth Warren (D-Mass.), Kennedy and Reed said: 

• Given the scope and complexity of digital asset market structure legislation, the full committee should hold a hearing to address critical questions about investor protection, illicit finance, market integrity, and more. 

• A wide range of stakeholder input shared in a public hearing will help inform the committee. 

• A hearing will allow committee members to reconcile pending legislation with separate bills passed by the House and proposed in the Senate Agriculture Committee. 

Community Banker Input Needed: With the Senate working to take up proposed crypto market structure legislation, ICBA continues calling on community bankers to use its Be Heard grassroots action center to urge senators to ensure the measure bars all digital assets market participants from offering yield, interest, or rewards on payment stablecoins.    

Background: The GENIUS Act stablecoin law prohibited payment stablecoin issuers from paying yield or interest directly to stablecoin holders, though this prohibition can be evaded by marketing the interest as “rewards” to stablecoin holders and having payments come from affiliates, exchanges, and other third parties instead of directly by the stablecoin issuer.    

ICBA View: In a national news release, ICBA in October urged lawmakers to ensure market structure legislation prohibits digital asset exchanges and affiliates from paying interest or yield to payment stablecoin holders to preserve access to credit in Main Street communities.