Editor's PiCK
"US crypto industry proposes compromise to banks on allowing stablecoin interest payments"
Summary
- The US crypto industry said it is proposing a new stablecoin-related compromise to revive the digital-asset market structure bill.
- Crypto firms said they are reviewing a plan to involve regional banks in holding stablecoin reserves and issuing tokens.
- The key sticking point is whether crypto trading platforms such as Coinbase can provide stablecoin interest, and compromise efforts amid banking-sector opposition could become a turning point for future legislative talks.
The US crypto industry is reported to be putting forward a new compromise involving stablecoins in an effort to revive digital-asset market structure legislation that has stalled in the Senate. To ease pushback from the banking sector, proposals to expand the role of regional banks are being discussed.
According to Bloomberg on the 4th (local time), crypto companies are reviewing a plan that would allow regional banks to take part in stablecoin framework design, including holding reserves or participating in token issuance. Anonymous sources familiar with the matter said the proposal was raised during closed-door discussions.
The compromise comes as the digital-asset market structure bill, which passed the House last year, has made no headway in the Senate due to opposition from banks. The key sticking point is whether crypto trading platforms such as Coinbase can offer interest to stablecoin holders. Banks have strongly opposed such a structure, arguing it could trigger deposit outflows.
Sources said the crypto industry proposed requiring stablecoin issuers to place a portion of their reserves in regional banks, or allowing regional banks to issue their own stablecoins through partnerships. However, the two sides have yet to reach a specific agreement.
The Donald Trump administration recently brought the crypto industry and the banking sector together at the White House to mediate, but the meeting reportedly ended without an agreement on the central issue.
Sen. Tim Scott, chairman of the Senate Banking Committee, told Fox News in an interview that "we should be able to find a balance point that protects consumers and regional banks while still allowing innovation and competition," signaling room for compromise.
While views within the crypto industry are not fully aligned on the compromise, there is a growing assessment that continued efforts to keep the bill alive could become a turning point for upcoming legislative negotiations.
YM Lee
20min@bloomingbit.ioCrypto Chatterbox_ tlg@Bloomingbit_YMLEE
