US Call from Rep. Hill to Expedite Approval of Crypto Market Structure Act

In a move to break the legislative deadlock hindering the sector’s development, U.S. Representative French Hill called on the Senate to move forward with the Cryptocurrency Market Structure Act, which was passed by the House with bipartisan support. This call came during Hill’s participation in the “Future of Finance” event organized by the Milken Institute, where he emphasized the importance of resolving the current dispute over stablecoin yields.

Legislative Context and Previous Developments

Last year, the sector saw coordinated efforts from both Congress chambers to establish a comprehensive regulatory framework. In 2025, the CLARITY Act (Digital Asset Market Clarity Act) successfully received House approval with bipartisan backing, with 78 Democratic members voting in favor alongside Republicans. However, the law did not explicitly address a sensitive issue that has become a stumbling block at the Senate level.

Core of the Dispute: Stablecoin Yields

The current disagreements revolve around the question: should digital platforms be allowed to offer users yields for holding or using stablecoins? The previous GENIUS Act explicitly banned stablecoin issuers from paying direct interest, but it did not prohibit third-party platforms like Coinbase from offering rewards to users. This regulatory gap has sparked sharp divisions among stakeholders.

Diverging Positions and Interests

The traditional banking sector believes that allowing stablecoin yields would threaten their deposits and harm local banks and small institutions. Meanwhile, the crypto industry argues that restricting these yields would stifle innovation, emphasizing that this issue was thoroughly discussed during the GENIUS Act’s review.

Proposed Solution by Congressman Hill

Hill pointed to a practical approach: if the Senate cannot reach an agreement on the yield issue, it can directly adopt the version of the CLARITY Act approved by the House. Hill highlighted that the law achieved bipartisan consensus, making it a logical solution to the current deadlock.

Mediation Efforts and Future Outlook

In February, the White House administration organized several meetings bringing together representatives from the banking and digital asset sectors to find common ground before early March. Despite ongoing disagreements, observers indicate a strong likelihood that the U.S. Cryptocurrency Market Structure Act will eventually gain final approval, especially as increasing pressure from the tech industry and policymakers pushes to end the legislative uncertainty hindering industry growth.