The U.S. cryptocurrency bill is in a new deadlock, and its prospects are uncertain

By: rootdata|2026/03/05 15:44:08
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The U.S. cryptocurrency legislation negotiations have hit a new deadlock. The banking sector has stated that it cannot support the compromise proposed by the White House, which allows stablecoin issuers to offer yield products in specific scenarios such as peer-to-peer payments, but prohibits providing yields on idle holdings. Crypto companies have accepted this compromise, but banks still wish to strictly limit the scope of businesses that can offer rewards, believing that the relevant terms may trigger deposit outflows.

Standard Chartered estimates that by the end of 2028, stablecoins could siphon off about $500 billion in deposits from the U.S. banking system. Trump stated on the Truth Social platform that he would not allow the banking sector to "undermine our strong crypto agenda." Crypto industry participants, including Coinbase, Ripple, and the Blockchain Association, have been involved in the negotiations. Blockchain Association CEO Summer Mersinger stated that "the path to a viable agreement is clearer than it was a month ago." The bill also faces other challenges: it needs the support of at least 7 Democratic senators, with some Democrats calling for a ban on elected officials profiting from crypto businesses, while other lawmakers are urging the inclusion of stricter anti-money laundering provisions. The bill also needs to be reconciled with the version from the Senate Agriculture Committee and compete for scheduling against other bills, such as housing policy reforms, in the limited Senate agenda.

Adrian Wall, Managing Director of the Digital Sovereignty Alliance, stated that if the bill is not submitted to the president for signing before July, the midterm elections will close the window for passage.

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