Crypto companies are reportedly offering concessions on stablecoin yields in an effort to break the deadlock surrounding stalled crypto market structure legislation.
The bill has already passed the House but remains stuck in the Senate, where negotiations have centered on whether stablecoin issuers should be permitted to offer yields. Banks have opposed such measures, arguing they could draw funds away from traditional savings accounts.
According to anonymous sources cited by Bloomberg, crypto firms are now suggesting compromises aimed at easing Senate concerns, including expanding the role of community banks within the stablecoin ecosystem.
Other proposals reportedly on the table include requiring stablecoin issuers to hold reserves at community banks and enabling those banks to issue their own stablecoins through partnerships with crypto firms.
No Deposit Flight, Senator Says
A White House meeting on Monday between representatives from the crypto and banking sectors ended without a resolution. However, Senate Banking Committee Chair Tim Scott said Wednesday on Fox News that allowing crypto firms to offer rewards could be beneficial, provided they do not market themselves as banks.
“The bottom line is there will not be a deposit flight,” Scott said, adding that further discussions with consumer banks are expected to take place as early as next week.
“The good news is that both sides remain at the table […] we’re going to overcome those hurdles and make sure that America is the crypto capital of the world.”
Bill Still Awaits Senate Approval
The U.S. Senate Agriculture Committee released a Republican-backed draft of the market structure bill in January, but it failed to secure Democratic support.
Lawmakers held a markup session on Jan. 29, allowing the bill to advance out of the Agriculture Committee. However, for it to pass the full Senate and eventually reach President Trump’s desk, it will require the backing of at least seven Democratic senators.
Meanwhile, the Senate Banking Committee has proposed a tougher version of the legislation. Both bills must be reconciled and aligned before the measure can move forward.
