US senators are set to discuss a major crypto market structure bill that could impact stablecoin holders’ ability to earn interest and rewards. The proposed changes in the bill would restrict passive returns on stablecoin balances, although some structured reward mechanisms may still be allowed under certain circumstances.

Lawmakers are considering clearer provisions for interest and rewards on stablecoins following criticism from industry leaders. The bill aims to strike a balance between demands for yield flexibility and concerns from banking groups about deposit-like competition. The draft will be reviewed by the Senate Banking Committee this week, with potential floor vote in the Senate.

Concerns over midterm elections, DeFi, and conflicts of interest pose additional challenges to the bill’s passage. Some Senate Democrats have demanded safeguards against public officials profiting from digital asset investments. Experts speculate that the bill may face delays until after the 2026 midterm elections, with expectations of Trump signing it into law by the end of that year.

Read more at cointelegraph.com: Industry Reacts to Market Structure Provisions on Stablecoin Rewards