Bank vs. Crypto Battle Ends... Stablecoin Interest Bill's Approval is a Matter of Time

▲ White House, Crypto Regulation, Stablecoin Bill/ChatGPT Generated Image

Expectations for the passage of the US crypto market structure bill (CLARITY Act) are rapidly rising as the stablecoin revenue structure, a key issue, has been compromised.

On May 2 (local time), Cointelegraph reported that the gap between the White House and Congress on how stablecoin profits are paid has narrowed, leading to industry evaluations that “now is the time for the bill to be processed.”

The core of this agreement is that a structure that pays interest simply for holding stablecoins will not be allowed, but reward-based profits will be possible under specific conditions. This is the result of simultaneously reflecting the concerns of regulators, who worried that stablecoins could function effectively like deposits, and the industry's demand to maintain user incentives.

The banking sector has strongly raised concerns that stablecoin interest payments could undermine the deposit base of the traditional financial system, while the crypto industry has pushed back, arguing that a complete ban would hinder innovation. This compromise was reached by partially resolving the points of conflict between both sides.

The market expects that with the resolution of the revenue structure issue, which was the biggest hurdle, discussions on the bill will gain full momentum. In particular, as a key policy agreement, which was a crucial variable in the legislative process, has been reached, expectations for actual passage are also rising.

The crypto market structure bill is a comprehensive legislative attempt by the US to establish a regulatory framework by categorizing digital assets by type, and stablecoin-related regulations are considered a core pillar of this bill. This agreement is likely to serve as a watershed moment in determining the future direction of US crypto regulation.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*