A US Senate Democrat says the crypto and banking lobbies should both agree on a new proposal to advance the crypto market structure bill.
Sen. Angela Alsobrooks, the top Democrat on the Senate Banking Committee, said at an American Bankers Association event on Tuesday that she and Republican Sen. Tom Tillis are working on a compromise proposal, but that crypto and banking interests won’t let “perfect be the enemy of good.”
“We’re all probably going to walk away a little bit miserable,” he said. “What we don’t want is to have an unregulated system – crypto is not regulated at all – and not allow defaults to lead to a situation where we have deposit flight.”
Banking groups, including the American Bankers Association, have urged the Senate to include a ban on third-party stablecoin revenue payments in the Senate’s crypto market structure legislation.
The groups argue that the fees pose a flight risk to bank accounts that could destabilize the banking system, and that the ban closes a perceived loophole in the GENIUS Act, which prohibited stablecoin issuers from offering derivatives of their tokens.
Stablecoin revenue payments are a popular way for crypto exchanges to attract customers, and crypto lobby groups have fought back against proposals to ban them.
The fight is preventing the crypto project from moving forward, which shows how market regulators will police crypto.
Senator Alsobrooks said that when negotiating the GENIUS Act, lawmakers knew they had to “re-examine the issue around interest and revenue,” adding that crypto market structure legislation should address the issue of stable revenue so they don’t disrupt the banking sector.
related to: Donald Trump lashes out at banks over stuck crypto bills
“If it looks like a duck and looks like a duck, it’s a duck,” he said. “Making sure we don’t allow bank-like products without bank protection is something we know is really important.”
Americans want fixed yield limits if banks are at risk
Alsobrooks’ comments come as the American Bankers Association shared a poll showing 42% of respondents agree that Congress should ban fixed income coins if there is a risk it could reduce the amount of money available to banks.
The survey, conducted by lobby group Morning Consult and polling 4,456 adults, also found that 84% agreed that businesses that offer banking services such as savings products should be “held to the same consumer protection standards as banks.”
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