Crypto firms are pushing new compromises on stablecoins to win over skeptical banks and keep the crypto market structure legislation alive.
New proposals under private negotiations indicate that community banks could take on a larger role in the stablecoin system, from holding part of issuers’ reserves to issuing their own stablecoins through partnerships, Bloomberg reported Thursday, citing people familiar with the matter.
The effort follows a Monday White House meeting between crypto executives and banking trade groups regarding stablecoin yields, the central friction point that has reignited industry tensions in recent weeks. However, the session concluded without a resolution on the primary points of contention.
Thousands of bankers have lobbied against stablecoin rewards, citing concerns that such incentives could siphon deposits away from community banks. In response, crypto firms argue that the banking industry’s resistance is a tactical move to stifle market competition.
Key industry figures are optimistic that the bill will reach Trump’s desk within weeks, with compromises on both sides.
Galaxy CEO Mike Novogratz expects bipartisan interest to drive its passage, noting that a compromise on stablecoins may fall short of industry expectations but could enable regulated growth.
