Some crypto firms are trying to find common ground with banks amid a stalemate over stablecoin regulations, according to a new Bloomberg report. So far, no official agreement has been reached, but industry players are actively exploring compromises.
The US crypto market has grown cautious after the White House couldn’t resolve the “yield vs rewards” impasse during a Monday meeting that brought together exchange representatives, industry groups, and Wall Street bankers.
Not all firms are making concessions, but some are proposing a bigger role for banks in the stablecoin ecosystem. Ideas include bank-issued tokens through partnerships and holding portions of stablecoin reserves. The goal is twofold: address community banks’ concerns about being cut out of the system, and give smaller banks new ways to generate revenue.
Signs of Momentum
Industry insiders say crypto firms have ramped up efforts to keep the stalled market-structure bill moving. One proposal suggests that stablecoin issuers hold a portion of their tokens at community banks, creating a bridge between the crypto world and traditional finance.
“Moving market-structure legislation this quickly shows that there’s broad recognition that crypto markets have outgrown regulatory ambiguity,” said Mike Cahill, CEO of Web3 infrastructure firm Douro Labs. “It doesn’t mean all the hard questions are solved, but it shows momentum toward treating crypto as a permanent part of the financial system.”
Senator Tim Scott, chairman of the Senate Banking Committee, told Fox News that the proposed compromises between crypto firms and banks could help keep innovation in America.
“We can protect consumers and community banks while still allowing innovation and competition to lower prices and expand access,” Scott said.
A “Positive” Closed-Door Senate Meeting
Senate Democrats held a closed-door meeting Wednesday to discuss crypto market structure, according to crypto journalist Eleanor Terrett on X. This was the first member-level discussion since the Senate Banking Committee postponed its markup last month.
Sources described the session as “positive” and perhaps the most productive Democratic meeting on crypto to date. Senate Majority Leader Chuck Schumer reportedly emphasized the need for continued industry engagement and urged lawmakers to maintain momentum to get the bill passed.
