- Chairman of the House Financial Services Committee, French Hill, emphasized that stablecoins should function as a tool to improve payment systems rather than as yield-generating assets.
- He further mentioned that lawmakers will maintain their ban on interest-bearing stablecoin offerings for consumers.
- Members of the cryptocurrency community voiced their frustration over this position, contending that it hampers innovation.
The chair of the House Financial Services Committee, French Hill, has responded to crypto industry advocates who are pushing for the inclusion of yield-bearing options in stablecoin regulations. Hill clarified that stablecoins are perceived by lawmakers primarily as a mechanism for facilitating payments, not as investment vehicles.
Rep. French Hill addresses requests from the crypto sector regarding stablecoins
Chairman Hill explained that there is no agreement among House members on the potential inclusion of yield-bearing options for consumers in stablecoin legislation. During a briefing held on Monday, he reiterated that stablecoins should enhance payment methods instead of being positioned as investment products.
His remarks come in light of recent discussions among cryptocurrency advocates concerning forthcoming stablecoin legislation in both the House and Senate. Industry figures, such as the CEO of Coinbase, Brian Armstrong, and Bitwise executive Matt Hougan, previously urged lawmakers to incorporate provisions that would allow consumers to earn interest on their stablecoin holdings.
“I understand the perspective, but I don’t believe there’s a consensus across the parties or chambers on allowing a dollar-pegged payment stablecoin to pay interest to its holders,” French Hill stated in a recent interview.
The STABLE Act is scheduled for markup on Wednesday, during which committee members will discuss, debate, and suggest amendments to the bill before it moves forward for additional consideration.
Dante Disparte, Chief Strategy Officer at Circle, expressed his support for the prompt bipartisan approval of the STABLE Act. He highlighted that the bill provides essential guidance on issues such as reserve requirements, trust, transparency, and compliance with financial crime regulations.
“The U.S. will benefit when payment stablecoins tied to the dollar have a clear process to enter the country’s regulatory framework. We call for quick and bipartisan passage of the STABLE Act,” Dante stated in a post on Tuesday.
In contrast, several members of the crypto community criticized the lawmakers’ decision, arguing that the lack of yield options would impede innovation.
“Without the opportunity for yield, this isn’t financial innovation — it’s merely traditional banking with a blockchain overlay,” remarked crypto lawyer Carlo D’Angelo.
CALL TO ACTION: The STABLE Act’s Missed Opportunity: Still No Yield for Bank Stablecoin Consumers
As it stands, the current version of the STABLE Act (H.R. 2392) continues to prohibit yield-bearing stablecoins for consumers. Many hoped that policymakers would take steps to modernize…
— Carlo⚖️ (@TheDeFiDefender) April 1, 2025
Chris Pavlovski, CEO of RUM, also voiced his disapproval of the House’s response, stating that the STABLE Act does not put America first.
“It’s a far cry from that. This is about prioritizing Wall Street, Coinbase & Circle,” he commented in a post on X.
The STABLE and GENIUS Acts do not provide any mention of interest for consumers holding stablecoins, raising concerns about the effectiveness of crypto.