Sen. Thom Tillis (R-N.C.) defended on Monday the bipartisan compromise on stablecoin yields in the Clarity Act, deeming it a “substantially improved, consensus-based product.”
Senator Says Compromise Addresses ‘Core Concern’
Tillis addressed the banking sector’s concerns that the revised text doesn’t adequately safeguard banks against “deposit flight.”
“We have worked in good faith with all sides throughout this process to encourage compromise and to avoid letting the perfect become the enemy of the good,” Tillis, who worked with Sen. Angela Alsobrooks (D-Md.) to finalize the compromise language, said.
Tillis said the compromise prevents stablecoin rewards from resembling interest on bank deposits, addressing the “core concern” over deposit flight, while helping cryptocurrency firms offer other forms of rewards.
“The result is a substantially improved, consensus-based product,” the lawmaker said. “Some in the banking industry may not want either of these things to happen, and we respectfully agree to disagree.”
