Some crypto firms have come up with new compromises to banks related to stablecoin disputes, a new Bloomberg report revealed. However, no agreement has been reached so far.
The US crypto market structure pessimism has increased after the White House failed to resolve the stablecoin “yield vs rewards” impasse during the Monday meeting. The meeting saw industry groups and representatives from exchanges, as well as Wall Street bankers.
Though not all crypto firms were offering new concessions, some proposed bigger roles for banks directly in the stablecoin ecosystem. These include bank-issued tokens through partnerships, holding reserves, among others, unnamed sources told the publication.
The proposals aim to address fears from community banks about disintermediation, while giving small banks new revenue opportunities.
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.
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.
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