Senator Cynthia Lummis (R-WY) has urged traditional banks on Thursday to embrace stablecoins and view digital assets as a business opportunity, pushing back against banking industry opposition that has stalled crypto's flagship market structure bill.
Digital asset analyst Nic Puckrin, co-founder of Coin Bureau, told Decrypt the ongoing delays represent "a real anticlimax" that will keep "a cap on digital asset prices before any geopolitical turbulence is factored in."
He said stablecoins have “strategic significance” amid dollar weakness, calling them a “backdoor to strengthen the dollar” even during geopolitical and macro stress.
"Whichever way the chips fall, though, it's clear stablecoins will remain a competitor to bank deposits,” Puckrin added, “Short of an outright ban on any form of rewards, there's little that can stop this."
Lummis, the chairwoman of the Subcommittee on Digital Assets, framed stablecoins as fundamentally pro-consumer technology that would make financial services "faster and cheaper" for both domestic and international transactions.
"Money can be transmitted on the blockchain more quickly than it can if you're going through existing bank structures," Lummis told Bartiromo, while pointing out that safety mechanisms developed with the Federal Reserve would protect users.
She added that lawmakers attempted to resolve the issue "by calling them bonuses or rewards, but we don't seem to be at a place where we can move this bill forward yet in committee."
The congresswoman pushed back on banks’ concerns, saying that stablecoins represent new revenue streams for banks through custody services, already permitted in three states, with faster payment mechanisms that compete with debit cards.
The Wyoming Senator mentioned to Bartiromo that despite losing their initial window, Senate Majority Leader John Thune has assured that floor time will be reserved for the legislation later this spring.
