Amidst the obstacles to the crypto bill, Lummis supports stablecoins, and U.S. banks may face a window for digital asset transformation
On February 6, news reports indicated that as the U.S. cryptocurrency market structure bill continues to be delayed, U.S. Senator Cynthia Lummis has called on domestic banks to view stablecoins and digital assets positively. In an interview with Fox Business, she stated that digital asset custody and stablecoin payments are not threats, but rather bring new product forms and growth opportunities to the traditional financial system.
Lummis currently serves as the chair of the Senate Digital Assets Committee. She pointed out that stablecoins can significantly shorten cross-border and domestic settlement times while reducing costs, thereby expanding the service boundaries of banks. “This is beneficial not only to consumers but also creates new revenue streams for banks,” she emphasized.
However, in negotiations over the regulatory framework for the crypto market in Congress, the issue of stablecoin yields has become one of the biggest points of disagreement. Banking groups oppose allowing digital asset platforms to pay stablecoin yields to users, fearing this could weaken the deposit base of traditional banks. The latest draft of the Senate Banking Committee includes provisions to restrict such yields, a stance supported by several banking organizations.
As a result, some industry participants have withdrawn their support for the yield mechanism, causing delays in the progress of bills aimed at establishing clear regulatory frameworks for Bitcoin and broader digital assets. John Boozman, chairman of the Senate Agriculture Committee, also stated that stablecoin rewards are “one of the most controversial issues,” with both sides having reasonable concerns.
Despite the ongoing legislative tug-of-war, the U.S. dollar stablecoin market continues to expand, with a total market capitalization approaching $290 billion. U.S. Secretary of the Treasury Bessent previously predicted that if the regulatory environment becomes clearer, the market could surpass $2 trillion by 2028. For banks, this may represent an unmissable structural opportunity.
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