TLDR Senator Angela Alsobrooks said crypto and banking groups must accept compromises to move the market structure bill forward. She warned that lawmakers do notTLDR Senator Angela Alsobrooks said crypto and banking groups must accept compromises to move the market structure bill forward. She warned that lawmakers do not

Senator Says Crypto and Banks Must Accept Trade-Offs

2026/03/11 17:59
3 min read
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TLDR

  • Senator Angela Alsobrooks said crypto and banking groups must accept compromises to move the market structure bill forward.
  • She warned that lawmakers do not want an unregulated crypto system or risks to bank deposits.
  • Banking groups urged the Senate to ban third-party stablecoin yield payments.
  • Crypto lobby groups opposed the proposed ban on stablecoin yield programs.
  • The dispute over stablecoin yields has delayed progress on the broader crypto market structure legislation.

Senator Angela Alsobrooks said lawmakers expect both crypto and banking groups to accept compromises to move market structure legislation forward. She stated that negotiators aim to prevent an unregulated system while protecting bank deposits. Meanwhile, talks continue as disputes over stablecoin yield payments delay progress in the Senate.

Crypto Bill Talks Focus on Stablecoin Yield Dispute

Senator Angela Alsobrooks addressed bankers at an American Bankers Association event on Tuesday. She said she and Senator Thom Tillis are drafting a compromise proposal. She urged both industries to accept trade-offs to advance the bill.

She said, “All of us will probably walk away just a little bit unhappy.” However, she stressed that lawmakers must avoid leaving crypto without regulation. She added that regulators must build guardrails to prevent deposit flight.

Banking groups, including the American Bankers Association, pressed senators to ban third-party stablecoin yield payments. They argue that such payments could draw deposits away from traditional banks. They also claim the practice could weaken financial stability.

The groups said a ban would close what they describe as a loophole in the GENIUS Act. That law already bars stablecoin issuers from offering yield directly on their tokens. However, exchanges can still provide yield through third-party arrangements.

Senate Negotiators Seek Balance Between Crypto and Banks

Stablecoin yield programs remain popular among crypto exchanges. These platforms use yield incentives to attract and retain customers. Meanwhile, crypto lobby groups oppose a broad ban on such payments.

The dispute has slowed movement on the broader market structure bill. That legislation outlines how federal regulators would oversee digital asset markets. Lawmakers now tie progress on the bill to resolving the yield issue.

Alsobrooks said negotiators anticipated further debate when they passed the GENIUS Act. She stated that lawmakers knew they would revisit interest and yield questions. She argued that market structure legislation must now address those concerns directly.

She said, “If it quacks like a duck and looks like a duck, it is a duck.” She explained that lawmakers must not allow bank-like products without bank-like protections. She said equal standards remain essential for consumer safety.

The American Bankers Association released survey data during the debate. Morning Consult surveyed 4,456 adults nationwide. The group said 42% supported banning stablecoin yields if they reduce bank funding.

The same survey found broad support for equal standards. According to the results, 84% agreed that businesses offering savings-like products should meet bank-level consumer protections. The findings accompanied the association’s call for legislative action.

The post Senator Says Crypto and Banks Must Accept Trade-Offs appeared first on CoinCentral.

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