Reuters: US cryptocurrency bill hits new deadlock, prospects uncertain

Negotiations for US cryptocurrency legislation have stalled. The banking industry has stated it cannot support the White House-push compromise, which allows stablecoin issuers to offer yield products in specific scenarios such as peer-to-peer payments, but prohibits offering yields on idle holdings. Crypto companies have accepted the compromise, but banks still want stricter restrictions on the scope of reward-based transactions, arguing that such provisions could lead to deposit outflows. Standard Chartered estimates that stablecoins could siphon approximately $500 billion in deposits from the US banking system by the end of 2028. President Trump tweeted on Truth Social that he would not allow the banking industry to “undermine our strong crypto agenda.” Crypto industry players including Coinbase, Ripple, and the Blockchain Association have participated in the negotiations. Blockchain Association CEO Summer Mersinger stated that “the path to a viable agreement is clearer than it was a month ago.” The bill also faces other challenges: it requires the support of at least seven Democratic senators, some of whom are demanding a ban on elected officials profiting from crypto businesses, while others are calling for stricter anti-money laundering provisions. The bill also needs to be reconciled with the Senate Agriculture Committee version and compete for a time slot with other bills, such as housing policy reform, within the limited Senate agenda. Adrian Wall, managing director of the Digital Sovereignty Alliance, said that if the bill fails to reach the president for signature before July, the midterm elections will close the passage window.