{"id":71241,"date":"2026-02-06T13:01:30","date_gmt":"2026-02-06T13:01:30","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=71241"},"modified":"2026-02-06T13:01:30","modified_gmt":"2026-02-06T13:01:30","slug":"crypto-firms-propose-key-stablecoin-concessions-to-advance-clarity-act-report","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=71241","title":{"rendered":"Crypto Firms Propose Key Stablecoin Concessions To Advance CLARITY Act \u2013 Report"},"content":{"rendered":"
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Crypto firms are reportedly stepping up efforts to advance the highly anticipated market structure bill by proposing potential compromises to address some of the banking sector\u2019s concerns on stablecoins.<\/p>\n

Crypto Firms Offer Stablecoin Compromises<\/h2>\n

On Wednesday, Bloomberg reported<\/a> that multiple crypto companies have been allegedly trying to \u201cwin over\u201d banks to salvage the crypto market structure bill, known as the CLARITY Act.<\/p>\n

The crypto bill has been stalled in the US Senate for weeks as crypto industry leaders and banks have been unable to reach an agreement on one of the bill\u2019s main topics, stablecoin rewards, in the Senate Banking Committee\u2019s portion of the legislation.<\/p>\n

The US banking industry has repeatedly expressed concerns about stablecoin policies, claiming that interest payments will distort market dynamics and affect credit creation in the country. Bank of America CEO Brian Moynihan recently<\/a> told investors that the banking sector, especially small- and medium-sized businesses, could face significant challenges if Congress does not prohibit interest-bearing stablecoins.<\/p>\n

According to people familiar with the matter, industry participants are offering banks new concessions regarding these concerns, as part of their efforts to advance the long-awaited crypto legislation.<\/p>\n

For instance, the firms have reportedly proposed giving community banks a larger role in the stablecoin system, allowing them to hold reserves or issue tokens through partnerships. Notably, they suggested requiring stablecoin issuers to maintain a portion of their reserves at community banks.<\/p>\n

Not all crypto companies<\/a> agree with the proposed ideas, Bloomberg sources noted, emphasizing that the two sides haven\u2019t resolved their differences. Moreover, it remains unclear whether the concessions satisfactorily address banks\u2019 concerns. However, it is \u201ca sign that they\u2019re redoubling efforts to keep the market-structure bill moving,\u201d the report added.<\/p>\n

The Stablecoin Rewards Dispute<\/h2>\n

As reported<\/a> by Bitcoinist, banks have heavily criticized the landmark stablecoin legislation, the GENIUS Act, affirming that it has loopholes that could pose risks to the financial system.<\/p>\n

For context, the crypto framework prohibits interest payments on the holding or use of payment-purpose stablecoins but only addresses stablecoin issuers. As a result, banking associations across the US pressed the Senate Banking Committee to add language to the CLARITY Act that also bans digital asset exchanges, brokers, dealers, and related entities.<\/p>\n

The Senate Banking Committee published its draft last month, which received heavy backlash from crypto industry leaders for introducing key restrictions for stablecoin issuers.<\/p>\n

Under the proposed draft, issuers would be able to offer rewards for specific actions, such as account openings and cashback. Nonetheless, they would be prohibited from providing interest payments to passive token holders. Coinbase\u2019s CEO Brian Armstrong argued that \u201cwould kill rewards on stablecoins,\u201d and allow banks to \u201cban their competition.\u201d<\/p>\n

This led to a delay of the Senate Banking Committee\u2019s markup session, initially scheduled for mid-January, and an extended negotiation process between lawmakers and leaders from the two industries.<\/p>\n

Earlier this week, the Trump administration oversaw<\/a> a White House meeting with crypto and banking groups, including PayPal, Ripple, Coinbase, Multicoin, Circle, the American Bankers Association, and the Bank Policy Institute, to ease the regulatory debate.<\/p>\n

The negotiation reportedly ended without an agreement on how to address the dispute but led to \u201cconstructive discussion on the risks and opportunities of stablecoin yield and rewards.\u201d<\/p>\n

Senate Banking Committee Chairman Senator Tim Scott recently affirmed that he is still hopeful the two sides can reach a balance. \u201cWe can protect consumers and community banks while still allowing innovation and competition to lower prices and expand access,\u201d he stated. \u201cBoth sides are working toward a compromise that keeps innovation here in America.\u201d<\/p>\n

\"crypto,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Crypto firms are reportedly stepping up efforts to advance the highly anticipated market structure bill by proposing potential compromises to address some of the banking sector\u2019s concerns on stablecoins. Crypto Firms Offer Stablecoin Compromises On Wednesday, Bloomberg reported that multiple crypto companies have been allegedly trying to \u201cwin over\u201d banks to salvage the crypto market […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-71241","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/71241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=71241"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/71241\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=71241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=71241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=71241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}