- Banks oppose interest-like stablecoin rewards, while crypto firms seek flexibility in final rulemaking.
- The Office of the Comptroller of the Currency signaled tighter limits, backing banks’ concerns.
- The Senate Banking Committee may hold a mid-to-late March markup as negotiations persist.
March has opened with renewed pressure on U.S. lawmakers as talks over the Clarity Act resumed in Washington. A White House deadline for banks and crypto firms to resolve stablecoin reward disputes passed March 1 without agreement. According to Crypto in America, negotiations continue as senators prepare another possible committee markup this month.
Deadline Missed, Talks Continue Behind the Scenes
The March 1 deadline came from Patrick Witt, executive director of the White House Crypto Council. However, no public compromise emerged by that date. Still, crypto participants stressed that discussions remain active.
Summer Mersinger said negotiations involve multiple stakeholders and require sustained engagement. A banking source told Crypto in America that both sides continue sharing legislative input. The source cautioned that overemphasizing the March 1 date misreads the process.
However, another banking source acknowledged unresolved differences. That source said banks oppose stablecoin balances earning interest-like returns through rewards or membership structures. Banks want lending or staking to remain active, time-locked, and clearly tied to investment risk.
Stablecoin Rewards Emerge as Central Obstacle
The yield debate has now entered its second month. Banking representatives worry vague language could recreate interest under alternative labels. Meanwhile, crypto firms seek flexibility as regulators refine details through agency rulemaking.
Notably, the Office of the Comptroller of the Currency signaled tighter limits last week. Its proposed rulemaking for the GENIUS Act suggested stablecoin rewards may face stricter boundaries. That move appears to strengthen the banking position.
Despite friction, some observers see progress. Collin McCune said lawmakers aim for a balance that leaves neither side fully satisfied. He described that moment as a sign negotiations are nearing resolution.
Senate Banking Eyes March Markup Window
Attention now shifts to the Senate Banking Committee. Sources said possible markup dates fall in mid-to-late March. That window allows further work on unresolved areas, including DeFi and ethics provisions.
Amanda Tuminelli said yield issues have overshadowed other topics. She added that stakeholders await updated legislative text. Staffers attending a recent Senate Democrats meeting described discussions as positive, according to Crypto in America.
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