Overview
- Crypto companies have proposed giving community banks bigger roles, including holding portions of stablecoin reserves or issuing tokens through partnerships.
- A White House session with crypto and banking groups this week ended without a deal on returns or rewards for stablecoin holders.
- The market-structure bill remains stuck in the Senate Banking Committee as lenders push to curb incentives they say would pull deposits from community institutions.
- Coinbase CEO Brian Armstrong withdrew support after draft language restricted passive interest, deepening industry splits, while Chairman Tim Scott says a balance is still possible.
- Senator Cynthia Lummis is urging banks to view stablecoins as a faster, cheaper payments product for customers as circulation reaches roughly $308 billion.