Crypto company proposes stablecoin yield compromise plan to break the deadlock on U.S. market structure legislation

As the U.S. cryptocurrency market structure bill remains deadlocked in the Senate, several crypto companies have proposed new solutions in an attempt to break the deadlock. The bill had previously passed the House of Representatives, but there is still controversy in the Senate over whether to allow stablecoin issuers to earn yields. The banking sector is concerned that this could compete with traditional savings accounts, leading to capital outflows.

According to Bloomberg, citing anonymous sources, the proposed compromise by crypto companies includes increasing the role of community banks in the stablecoin system, requiring issuers to hold reserves at community banks, and collaborating to help banks issue their own stablecoins. The plan aims to balance innovation and profitability with financial security, creating conditions for the bill to pass in the Senate.

On Monday, representatives from the cryptocurrency and banking industries held a meeting at the White House but did not reach a final agreement. Senate Banking Committee Chairman Tim Scott stated that allowing crypto companies to pay rewards is feasible, but the promotional methods cannot be on par with banks. He emphasized that the core goal is to prevent deposit outflows and plans to continue discussions with consumer banks next week to push negotiations forward.

The bill still requires Senate approval before it can be sent to President Trump for signing. On January 29, the Senate Agriculture Committee reviewed and passed the bill, but to become law, it needs support from at least seven Democratic senators. The version proposed by the Senate Banking Committee is more stringent, and both sides need to reach an agreement to proceed.

Analysts believe that the compromise proposed by crypto companies could ease regulatory concerns while opening up space for stablecoin yield innovations. If negotiations go smoothly, the U.S. cryptocurrency market is expected to gain clearer policy guidelines, providing long-term support for industry development. Market participants and investors are closely watching the bill’s progress and the potential legislative breakthroughs’ impact on the stablecoin and digital asset ecosystems.