Reuters: US Cryptocurrency Bill Hits New Stalemate, Future Uncertain

Odaily News Negotiations for US cryptocurrency legislation have hit a new impasse. The banking industry has indicated it cannot support a compromise plan promoted by the White House. This plan would allow stablecoin issuers to offer yield products in specific scenarios like peer-to-peer payments but prohibits providing yield on idle holdings. Crypto companies have accepted this compromise, but the banking sector still hopes to strictly limit the scope of businesses that can offer rewards, believing the relevant provisions could trigger deposit outflows. Standard Chartered estimates that by the end of 2028, stablecoins could siphon approximately $500 billion in deposits from the US banking system.

Trump posted on the Truth Social platform, stating he would not allow the banking industry to "destroy our strong crypto agenda." Crypto industry participants including Coinbase, Ripple, and the Blockchain Association have been involved in the negotiations. Blockchain Association CEO Summer Mersinger stated that "the path to a workable agreement is clearer than it was a month ago."

The bill faces other challenges: it needs the support of at least 7 Democratic senators. Some Democrats are demanding a ban on elected officials profiting from crypto businesses, while other lawmakers are calling for the inclusion of stricter anti-money laundering provisions. The bill also needs to be reconciled with the version from the Senate Agriculture Committee and compete for limited Senate floor time with other bills, such as housing policy reform. Adrian Wall, Managing Director of the Digital Sovereignty Alliance, stated that if the bill is not sent to the President for signature by July, the midterm elections will close the window for passage.