During a briefing on April 1, Representative French Hill addressed the ongoing discussions surrounding the regulation of stablecoins. One key aspect that has garnered attention is the proposal to allow consumers to earn interest on their stablecoin holdings.
However, Hill rejected this proposal, stating that there is no consensus among lawmakers to support it. The debate has become a point of focus as the U.S. Congress moves closer to passing new legislation for stablecoins.
French Hill Points Lack of Consensus Among Lawmakers
Rep. French Hill, who represents Arkansas, made it clear that there is currently no agreement on the proposal for consumers to earn interest on stablecoins. In his remarks, Hill acknowledged the concerns of those advocating for this change but emphasized the lack of consensus among both the House and Senate.
“I hear the point of view but I don’t think that there’s consensus among the parties or the houses on having a dollar-backed payment stablecoin pay interest to the holder of that stablecoin,” Hill stated during the briefing.
French Hill comments come as part of ongoing discussions on the “STABLE Act” (H.R. 2392), which seeks to regulate stablecoins in the U.S. The legislation, in addition, aims to provide clear guidelines for stablecoin issuers and establish a framework for how these digital assets can be used in financial transactions. However, the bill, as it stands, does not include provisions for stablecoin holders to earn interest.
The STABLE Act and Recent Amendments
The latest version of the STABLE Act, referred to as the Amendment in the Nature of a Substitute (ANS), was made available on the Financial Committee’s website on the morning of April 2, 2025. This updated version of the bill includes recent amendments and additions. The ANS will serve as the basis for the upcoming markup session set for April 3, 2025.
Despite calls from industry advocates for a more modern approach that includes interest-bearing stablecoins, the STABLE Act does not appear to have embraced these proposals.
Critics argue that the legislation, as it stands, limits the potential benefits of stablecoins by restricting consumer access to interest. Those pushing for change believe that this missed opportunity may hinder the growth and development of the stablecoin market.
Industry Advocacy for Interest-Bearing Stablecoins
Subsequently, the debate over stablecoin interest is not limited to policymakers. Industry leaders and cryptocurrency advocates have voiced their concerns over the current legislative direction. For example, Brian Armstrong, the CEO of Coinbase, unlike French Hill has argued that stablecoins should be allowed to pay interest to their holders, similar to how savings accounts offer returns to consumers.
Armstrong highlighted the potential benefits of allowing consumers to earn onchain interest, stating that it would democratize access to higher yields and provide more financial opportunities for the general public.
“Consumers deserve a bigger piece of the pie. Opening the door for onchain interest will force us all to up our game for the ultimate benefit of consumers,” Armstrong said in a recent statement. He additionally emphasized that by enabling interest-bearing stablecoins, both the U.S. economy and global consumers would benefit from increased access to financial resources.
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