Crypto: Crypto Firms Offer Ideas To Break Market Structure Gridlock: Report

Some crypto companies have proposed giving community banks a bigger stablecoin role as Senate negotiations stall over the contentious market structure bill.

Crypto companies are reportedly floating concessions relating to stablecoin yields in an attempt to unfreeze the delayed crypto market structure bill.

The House has advanced crypto market-structure legislation, but negotiations have stalled in the Senate as negotiations continue over whether stablecoin issuers should be allowed to offer yields, with banks arguing that such offerings would compete with and take money away from traditional savings accounts.

Anonymous sources told Bloomberg that crypto firms are now proposing measures, such as giving community banks a larger role in the stablecoin system, to help ease the bill through the Senate.

Other proposed compromises include requiring stablecoin issuers to hold reserves at community banks and helping community banks issue their own stablecoins through partnerships.

A White House meeting on Monday between crypto and banking groups ended without agreement.

Senate Banking Committee Chairman Tim Scott told Fox News on Wednesday that allowing crypto firms to offer rewards is a good thing, but they cannot advertise as if they were banks.

Related: Banks’ stablecoin concerns are ‘unsubstantiated myths’: Professor

The bottom line is that “there will not be a deposit flight. We’re going to sit down with consumer banks, hopefully next week again, and have this conversation,” he said.

The US Senate Agriculture Committee released a Republican draft of the market-structure bill in January, but it lacked Democratic support.

Source: CoinTelegraph