Some of the banking industry’s top advocates in Washington have become increasingly alarmed about a new version of a compromise to resolve a dispute with crypto over stablecoin rewards, according to multiple sources involved in the talks.
Last month, we wrote about the mounting concern from certain crypto companies over the compromise text being developed by Sens. Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.).
But a more recent draft shared with advocates late last week has flipped the dynamics behind this push. Now, bank lobbyists are quietly scrambling to make sure stablecoin balances can’t be used to generate rewards for crypto customers.
Stablecoin yield remains the top issue for policymakers to solve before a much larger market structure overhaul of crypto regulation can advance through the Senate Banking Committee. Talks are ongoing, and the text of the compromise has not been finalized.
