The US crypto bill faces obstruction from Wall Street banks over stablecoin yields; The Digital Chamber proposes a compromise to facilitate a settlement.

Despite urging from Trump administration officials for compromise, a meeting this week at the White House between Wall Street bankers and cryptocurrency executives stalled. Banks maintained that any stablecoin yields or rewards were unacceptable, arguing that such returns threatened core deposit activity in the U.S. banking system, and articulated their position in a paper titled "The Prohibition of Yields and Interest Principles." The Digital Chamber, in an article published on the X platform, stated that the industry group released a set of principles for stablecoin legislation, aimed at responding to and countering regulatory recommendations previously made by Wall Street banks to U.S. lawmakers. The group advocates that stablecoin issuers should be able to access the Federal Reserve's payment system and allow non-bank institutions to issue stablecoins under an appropriate regulatory framework. The principles emphasize that stablecoin regulation should focus on the transparency and liquidity of reserves, rather than fully integrating them into the traditional banking regulatory system. (Coindesk)