Stablecoin controversy persists; US crypto regulation bill expected to be finalized within weeks

TokenSherpa · 2026-01-17T02:52:18+00:00

New developments in cryptocurrency industry regulation: Galaxy CEO Novogratz expects the comprehensive regulatory bill to be finalized within a few weeks. Although Senate discussions have stalled, both sides still need to reach a compromise on stablecoin yield issues to promote industry growth.

TokenSherpa

2026-01-17 02:52:18

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【Blockchain Rhythm】New progress in cryptocurrency industry regulation. Galaxy Digital CEO Michael Novogratz recently revealed that a comprehensive regulatory bill for the entire crypto market may be finalized in the coming weeks. His core attitude is: the bill doesn’t have to be perfect; as long as it can promote progress, it’s worth it.

The Senate Banking Committee originally planned to hold a hearing on Thursday to discuss amendments and voting on the Crypto Market Structure Act. But just hours before the meeting, negotiations suddenly stalled. The biggest disagreement between both sides centered on the long-standing issue of stablecoin yields.

The specific conflict is this: the GENIUS Act passed this summer prohibits stablecoin issuers from paying interest directly to holders. It sounds strict, but the banking industry groups found a loophole—third-party platforms like Coinbase can still offer rewards, rendering the rules ineffective. The crypto community exploded in outrage, accusing the banking sector of suppressing competition, and criticizing that this issue was debated back in the summer and is still being tangled over.

Novogratz took a pragmatic stance in a CNBC interview on Friday: “I believe all parties will eventually find a compromise. The outcome may not be the ideal perfect version for the crypto industry, but at least it’s acceptable. The key is to get the bill done and keep the industry moving forward. It doesn’t have to be perfect; we can always refine it gradually.”

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pumpamentalist

· 9h ago

Playing word games again, banning direct payments but third parties still pay? This is a classic case of regulatory shell games.

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NFTRegretful

· 9h ago

Coming back with the same trick? Prohibiting direct interest payments, yet third-party platforms still exploit users. Isn't this just a different disguise to continue harvesting profits?

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ImpermanentTherapist

· 9h ago

Another regulatory drama, the promised few weeks to finalize it, but it feels like we've seen this routine countless times... Prohibiting direct interest payments was bypassed by Coinbase like this; this bill is really a bit disappointing. Even if it's not perfect, it still needs to move forward? I think this is just the regulatory authorities being too lazy to take it seriously. The stablecoin yield issue is stuck again; banks and crypto are really natural enemies. Listening to Novogratz's words, it sounds like he's hinting... don't expect this bill to change much. A rule with loopholes is basically no rule; if this continues, it's better not to bother. The deadlock only broke a few hours before the hearing ended; this move is truly remarkable. So in the end, everyone does their own thing? It feels like the US is always bickering. This loophole is big enough for tanks to pass through; can't we see that? The regulatory bill has turned into a political compromise; sadly, retail investors are still hoping it will protect them.

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HalfIsEmpty

· 9h ago

Is it just banning issuers and not platforms? This loophole is big enough to drive a tank through. --- It's the same old stablecoin story. Platforms like Coinbase have long figured out how to bypass it. --- Is it worth pushing just because the bill isn't perfect? Then the regulatory authorities are really just slacking off. --- Prohibiting direct interest payments, but third parties still do it. Laughing to death. This rule is just a decoration. --- Always stuck on stablecoins. Enough already. Pass it quickly. --- It's not surprising that banking groups find loopholes. I'm just worried that after the bill passes, it will still be a mess. --- To be finalized within a few weeks? I bet five bucks it will be postponed again. --- Novogratz is right. Pass it first, then worry. Perfection is the enemy of good. --- It feels like this bill is just a compromise product. Nothing can be regulated, and nothing can be controlled.

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