Reuters: U.S. Crypto Framework Bill Stalls in New Deadlock Due to Banking Industry's Intransigence

According to Reuters, negotiations on cryptocurrency legislation in the U.S. have hit a new impasse as the banking sector has stated it cannot support the compromise proposed by the White House. This proposal allows stablecoin issuers to offer yield products in specific scenarios such as peer-to-peer payments, but prohibits offering yields on idle holdings. Crypto companies have accepted this compromise, but banks still wish to strictly limit the scope of businesses that can offer rewards, believing that the related terms could trigger deposit outflows. Standard Chartered estimates that by the end of 2028, stablecoins could siphon off about $500 billion in deposits from the U.S. banking system.

Trump posted on the Truth Social platform that he would not allow the banking sector to "undermine our strong crypto agenda." Companies in the crypto industry, including Coinbase, Ripple, and the Blockchain Association, have participated in the negotiations. Blockchain Association CEO Summer Mersinger stated that "the path to a viable agreement is clearer than it was a month ago."

The bill also faces other challenges: it needs the support of at least seven Democratic senators, and some Democrats are calling for a ban on elected officials profiting from crypto businesses, while other lawmakers are urging the inclusion of stricter anti-money laundering provisions. The bill also needs to be reconciled with the version from the Senate Agriculture Committee and compete for scheduling in a limited Senate agenda alongside other bills such as housing policy reform. Adrian Wall, Managing Director of the Digital Sovereignty Alliance, stated that if the bill is not sent to the president for signing by July, the midterm elections will close the window for passage.