Crypto Firms Offer Concessions to Banks as Stablecoin Disputes Stall Key Crypto Bill
The crypto industry is blinking first.
In a high-stakes regulatory standoff, major cryptocurrency firms are reportedly drafting concessions aimed at placating traditional banks. The goal? Unstick a pivotal piece of crypto legislation that's been paralyzed by a single, thorny issue: who gets to control the future of stablecoins.
The Core Conflict: Banking vs. Blockchain
The impasse isn't about philosophy—it's about power and profit. Banks see stablecoins, those digital tokens pegged to assets like the US dollar, as their natural domain. They argue that issuing them is essentially a banking function, demanding a regulatory moat only they can cross. Crypto-native companies counter that this logic is a relic—a classic case of incumbents trying to regulate innovation into a box they own. The resulting deadlock has left a critical bill, one that could provide the clarity the entire sector craves, gathering dust.
What's on the Table?
While details remain under wraps, the proposed concessions likely involve stricter reserve requirements, enhanced auditing mandates, or even shared governance models. It's a pragmatic, if painful, pivot for an industry built on disruption. The message is clear: better a regulated seat at the table than no table at all. After all, even the most decentralized idealist knows you sometimes have to play by the old money's rules to change the game—a familiar dance of disruption eventually cutting a check for a seat in the legacy system's boardroom.
The clock is ticking. Every day of delay is a day of uncertainty for a market hungry for legitimacy. Whether these olive branches are enough to satisfy banking interests—or are seen as too little, too late—will determine if this bill moves forward or becomes another casualty in the endless turf war between Wall Street and the blockchain.
Optimism Resurfaces as Crypto Firms Strengthen Efforts to Keep Crypto Bill Moving
Per sources, crypto companies have suggested new concession ideas in recent times. One such proposal includes requiring stablecoin issuers to hold a portion of their tokens at community banks.
“Advancing market structure legislation this quickly suggests there’s broad recognition that crypto markets have outgrown regulatory ambiguity,” Mike Cahill, CEO of Web3 infrastructure firm Douro Labs and initial contributor to PYTH Network, told Cryptonews.
“That doesn’t mean the hard questions are fully resolved, but it does show momentum toward treating these markets as permanent components of our financial system.”
Meanwhile, Senator Tim Scott, chairman of the Senate Banking Committee, told Fox News on Wednesday that the compromise from crypto firms and banks WOULD keep “innovation here in America.”
“We can protect consumers and community banks while still allowing innovation and competition to lower prices and expand access,” Scott said.
Closed-Door Meeting on Crypto Market Structure Turnes ‘Positive’
Senate Democrats planned to reconvene on Wednesday for a closed-door meeting on crypto market structure, crypto journalist Eleanor Terrett posted on X, citing two sources familiar with the matter.
“It will be the first Dem member-level meeting since the US Senate Banking Committee postponed its markup last month,” she wrote.
SCOOPLET: Senate Democrats are planning to reconvene tomorrow for a closed-door meeting on crypto market structure, according to two sources familiar with the plans. It will be the first Dem member-level meeting since the @BankingGOP postponed its markup last month.
Sources noted that the closed-door meeting turned “positive” and was “arguably the most productive Democratic meeting to date.”
The meeting saw Senate Majority Leader Chuck Schumer stressing the importance of industry engagement and urging continued momentum to get the bill done, Terret reported in a recent update.
