Crypto Firms Propose Stablecoin Concessions to Banks in US Crypto Market Structure Talks

Crypto firms have proposed new compromises aimed at addressing banking sector concerns in ongoing US stablecoin regulation and broader US crypto market structure, according to a Bloomberg report, though no formal agreement has yet been reached.

The proposals follow a White House-hosted meeting earlier this week involving crypto industry groups, exchange representatives, and Wall Street banks, where discussions failed to resolve a key dispute over whether stablecoin issuers should be permitted to offer yield-bearing products or rewards. The unresolved issue has contributed to renewed pessimism around the near-term trajectory of US crypto market structure legislation.

According to people familiar with the discussions cited by Bloomberg, some crypto firms have suggested expanding the role of banks within the stablecoin ecosystem. Proposed measures include partnerships enabling bank-issued stablecoins, allowing banks to hold stablecoin reserves, and requiring issuers to place a portion of their token reserves with community banks.

The proposals are designed to mitigate concerns among smaller banks that stablecoins could lead to disintermediation, while also creating potential new revenue streams for community banking institutions.

US Crypto Market Structure Bill Maintains Momentum Despite Disputes

Despite the lack of consensus, industry participants have signaled continued momentum behind broader crypto market structure legislation. Mike Cahill, CEO of Web3 infrastructure firm Douro Labs and an initial contributor to the Pyth Network, said the pace of legislative activity reflects growing recognition of crypto’s permanence within the financial system.

“Advancing market structure legislation this quickly suggests there’s broad recognition that crypto markets have outgrown regulatory ambiguity,” Cahill told Cryptonews. “That doesn’t mean the hard questions are fully resolved, but it does show momentum toward treating these markets as permanent components of our financial system.”

Senator Tim Scott, chairman of the Senate Banking Committee, echoed this view in comments to Fox News on Wednesday, stating that ongoing compromise efforts between crypto firms and banks could help ensure innovation remains within the United States.

“We can protect consumers and community banks while still allowing innovation and competition to lower prices and expand access,” Scott said.

Senate Democrats Report Progress in Closed-Door Market Structure Meeting

Separately, Senate Democrats convened a closed-door meeting on Wednesday to discuss crypto market structure legislation, marking the first member-level Democratic meeting on the issue since the Senate Banking Committee postponed its markup last month.

Crypto journalist Eleanor Terrett reported on X, citing sources familiar with the meeting, that discussions were described as “positive” and “arguably the most productive Democratic meeting to date.” According to the report, Senate Majority Leader Chuck Schumer emphasized the importance of continued industry engagement and urged lawmakers to maintain momentum toward finalizing the bill.

While major policy questions—including stablecoin yield provisions—remain unresolved, the recent discussions suggest that negotiations between lawmakers, banks, and crypto firms are continuing as pressure mounts to establish a comprehensive regulatory framework for the US digital asset market.