Efforts to advance US crypto market structure legislation have gained momentum. Several crypto firms proposed new compromises to ease tensions with the banks regarding stablecoin regulation. No formal agreement has been reached yet but recent discussions have renewed into a process that has been stalled for months.
According to a Bloomberg report, select crypto companies have floated concessions designed to address concerns from community and regional banks about potential disintermediation caused by stablecoins.
These proposals reportedly include allowing banks to play a more direct role in the stablecoin ecosystem, such as issuing bank-backed tokens through partnerships, holding portions of stablecoin reserves, or acting as custodians.
Despite these developments, disagreements around whether stablecoin issuers should be allowed to pay interest or offer yield-like rewards continue to block progress.
A White House-hosted meeting earlier this week, which brought together representatives from crypto firms, exchanges, and major banking groups, failed to resolve the long-standing “yield versus rewards” debate during the Monday meeting.
While participants described the meeting as constructive, sources indicated that the lack of consensus has prolonged uncertainty around the legislation.
“Advancing market structure legislation this quickly suggests there’s broad recognition that crypto markets have outgrown regulatory ambiguity,” Mike Cahill, CEO of Web3 infrastructure firm Douro Labs and initial contributor to Pyth Network.
The session was considered one of the most productive to date, according to people familiar with discussions, signaling a shift in tone following earlier delays.
The senior Senate leadership urged continued collaboration to advance the legislation, which lawmakers emphasized is essential for bill progress.
Supporters argue that accelerating regulatory clarity reflects growing recognition that digital assets have become permanent fixtures within the global financial system.
Also Read: Crypto Market Sentiment Softens as US Senate Delays Key Market Structure Bill
The banking trade group issued a joint statement, confirming its commitment to working together with lawmakers and regulators to create effective digital asset regulations.
The groups emphasized the need for protective measures that would maintain local lending, safeguard financial stability, and consumer protection while allowing innovative developments to progress.
The crypto organizations considered the discussions to be a key step forward. The organizations restated their backing for laws that will advance market competition, secure consumer protection, and establish the United States as the leader in blockchain innovation.