A US Senate Democrat says both the crypto industry and the banking sector will need to accept compromises as lawmakers work to move forward with crypto market structure legislation.
Speaking at an event hosted by the American Bankers Association on Tuesday, Angela Alsobrooks said she and Republican Thom Tillis are collaborating on a compromise proposal aimed at advancing the bill. However, she warned that neither the crypto sector nor banking groups should let “perfect be the enemy of good.”
“Everyone will likely walk away a little unhappy,” Alsobrooks said. “What we want to avoid is a system where crypto remains completely unregulated and where there are no guardrails in place to prevent deposit flight from banks.”
Banking organizations, including the American Bankers Association, have urged the Senate to include a provision banning third-party stablecoin yield payments in the pending crypto market structure legislation.
Banking groups argue that stablecoin yield payments could encourage deposit flight from traditional bank accounts, potentially destabilizing the banking system. They say banning such payments would also close what they view as a loophole in the GENIUS Act, which already prohibits stablecoin issuers from offering yield on their tokens.
Yield incentives have become a common strategy used by crypto exchanges to attract customers, and industry lobby groups have pushed back strongly against proposals to ban them.
The dispute has slowed progress on a broader crypto market structure bill that would define how regulators oversee the digital asset sector.
Speaking on the issue, Angela Alsobrooks said lawmakers anticipated the debate over interest and yield when negotiating the GENIUS Act. She added that upcoming market structure legislation must address stablecoin yield offerings to ensure they do not undermine the traditional banking system.
“If it quacks like a duck and looks like a duck, it is a duck,” she said, emphasizing that financial products functioning like bank deposits should be subject to similar safeguards. “We cannot allow bank-like products to exist without bank-like protections.”
Survey shows support for limits if banks face risks
Alsobrooks’ comments came as the American Bankers Association released survey results indicating public concern about the potential impact of stablecoin yields on the banking sector.
The poll, conducted by Morning Consult and based on responses from 4,456 US adults, found that 42% of respondents supported banning stablecoin yields if they risk reducing the amount of money held in banks.
The survey also found broad agreement — 84% of respondents — that companies offering services similar to banking products, such as savings accounts, should be subject to the same consumer protection standards as traditional banks.
