U.S. Crypto Firms Propose Compromise on Stablecoin Issuance

U.S. crypto companies have proposed a compromise to facilitate stablecoin issuance by regional banks, suggesting that stablecoin issuers hold reserves at these banks as part of the CLARITY Act. According to NS3.AI, banking groups are concerned that incentivizing stablecoin holdings might lead to a withdrawal of customer funds from traditional banks. Discussions are underway to address this issue. Senate leaders are hopeful that a balanced agreement can be reached to benefit both the crypto industry and traditional financial institutions.