U.S. Crypto Bill Faces Obstruction from Wall Street Banking Group Over Stablecoin Yield, The Digital Chamber Proposes Compromise to Facilitate Mutual Concessions

Odaily News: Despite urging from Trump administration officials for both sides to seek compromise, the meeting between Wall Street bankers and cryptocurrency executives at the White House this week reached an impasse. The banks insisted that any stablecoin yield or rewards are unacceptable, arguing that such returns threaten the deposit activities at the core of the U.S. banking system. They outlined their position in a paper titled "The Principle of Prohibiting Yield and Interest." The Digital Chamber stated in a post on platform X that the industry group has released a set of principles for stablecoin legislation, aiming to respond to and counter the regulatory proposals previously submitted by Wall Street banks to U.S. lawmakers. The organization advocates that stablecoin issuers should have access to the Federal Reserve's payment system and that non-bank entities should be allowed to issue stablecoins under an appropriate regulatory framework. The principles emphasize that stablecoin regulation should focus on reserve transparency and liquidity, rather than fully integrating them into the traditional banking regulatory system. (Coindesk)