In the U.S., this current stalemate over stablecoin yields to the present impasse of stable coin (e.g. S. Senate’s crypto market structure bill is now in writing, and the crypto side is holding the line on needing some types of rewards for stablecoin users.
This week, a White House meeting between Wall Street bankers and crypto executives hit. But the banks argued that no stablecoin yield or reward is acceptable, saying such yields threaten the depository activity at center of U.S.” s S Banks and their role in a one-page paper entitled “Yield and Interest Prohibition Principles” about banking system. ‘A ,’ said.
Now the Digital Chamber has penned its own set of principles and began to circulate it on Friday, fighting for the section in the Senate Banking Committee’s draft bill that specifies “a variety of circumstances where rewards may be appropriate.” But it’s also a good document, which was obtained by CoinDesk for the latest paper, that the bankers’ request for pursuing two-year study on stablecoins’ effect on deposits is acceptable, even as long as it does not require an automatic regulatory rulemaking in response to this.
Speaking Friday, Digital Chamber CEO Cody Carbone said ‘We would like to make the case known for policymakers that we do think this is a compromise. In this document, the industry group is writing that it’s willing to abandon anything like an interest payment for static holdings of stablecoins (which would most closelyresemble a bank savings account) with its written statement.
The crypto industry has been pursuing stablecoin products under last year’s Guiding and Establishing National Innovation for U.S. s S This pending Digital Asset Market Clarity Act is the bankers trying to dial back law with edits included in this ‘, Stablecoins (GENIUS) Act. However, the GENIUS Act is the current law of land so Carbone suggested his industry’s willingness to scrap rewards on stablecoin holdings was an important concession; “the crypto companies must offer rewards when customers engage in transactions and other activity.” he said Bankers should go back to the table and talk again,’ bankers said.
He said ‘If they don’t negotiate, then the status quo is that just rewards remain as-is.’ Carbone added his group’s large membership — including banking members can help bring it closer to middle of the debate. But if they do nothing and still say, ‘We just want a blanket ban’ this goes nowhere. , “It’s a phrase that says.
His new position paper by the Digital Chamber will reset negotiations that have stopped progress on the legislation since an 11th-hour dispute sparked a hearing on what would be considered in the banking panel’month ago’.
I hope we can be the voice or the middle man who drives this conversation again, because we are the one trade that represents both sides,” Carbone said.
On Friday, the principles of the Digital Chamber outlined two specific reward scenarios it wanted protected those related to liquidity and those that support ecosystem participation. The group argued that those two provisions of the draft bill’s Section 404 are particularly important in decentralized finance (DeFi) and its implications.
During the end of this month, it is said that the White House has called for a compromise. So far, the bank side hasn’t been budged in repeating meetings, though Trump crypto adviser Patrick Witt said in a Friday interview with Yahoo Finance that another meeting could be held next week.
Witt told Yahoo Finance ‘We are working hard to address the issues that were raised.’ He said both sides have been encouraged to bend on the details.
But this is such a big problem,’ he said, because the Clarity Act doesn’t really involve stablecoins — which was more appropriate to business of the already-passed GENIUS Act. But he added “Let’s take this very narrow problem of idle yield here with a scalpel,” referring to the phrase, “let’re you on your own.”
The Senate Agriculture Committee has already passed its own version of the Clarity Act, which focuses on the commodities side of this ledger; the counterpart of that legislation is more about securities and the Sen. Banking Committee’s version is also concerned with Securities. A bank panel that carries its agriculture counterparts follows the banking panel, it’ll push the bill along partisan lines. But even if a final bill is to be passed in the entire Senate, it’s going to require much Democratic support to clear the chamber’d 60-vote margin.
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