A bill meant to bring order to the US crypto market is stuck in Congress, caught between two powerful groups that cannot agree on one key question: should stablecoins be allowed to pay interest?
Banks And Crypto In A Legislative StandoffSenator Thom Tillis of North Carolina has been working on a revised draft aimed at satisfying both sides, but reports say it has already drawn pushback and has yet to be released publicly.
The standoff reflects a deeper anxiety in the banking industry — one that a senior Moody’s analyst says may be premature, at least for now.
Near-Term Risk Remains Low, Analyst SaysThe US already has payment systems that are fast, low-cost, and trusted, he said, which reduces the appeal of stablecoin-based alternatives for everyday transactions.
Still, stablecoin use is not standing still. Data shows the total market cap for stablecoins crossed $300 billion by the end of last year — a figure that reflects growing use in payments, cross-border commerce, and onchain finance.
Tokenized real-world assets, which represent physical or traditional financial assets on a blockchain, are also expanding alongside them.
That is not happening today, but it is the scenario the banking lobby appears to be preparing for.
Some voices in the crypto industry are warning that failure to pass the CLARITY Act could leave the sector exposed to crackdowns from less-friendly regulators down the road.
That adds urgency to negotiations that have so far produced little progress. Both sides say they want a deal.
Getting there is another matter.
Featured image from Pexels, chart from TradingView
