Bank vs. Crypto Battle Ends...Stablecoin Bill's Passage Is a Matter of Time

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

As the stablecoin revenue structure, a key issue of the U.S. cryptocurrency market structure bill (CLARITY Act), has been compromised, expectations for the bill's passage are rapidly rising.

On May 2 (local time), Cointelegraph reported that as the differences in opinion between the White House and Congress regarding stablecoin revenue payment methods narrowed, the industry is evaluating that it's “now time for the bill's processing.”

The core of this agreement is that while a structure that pays interest merely for holding stablecoins will not be allowed, the direction has been set to allow reward-based returns under specific conditions. This is the result of simultaneously reflecting the concerns of regulators, who worried that stablecoins would effectively function like deposits, and the industry's demand to maintain user incentives.

Up until now, the banking sector has strongly raised concerns that stablecoin interest payments could undermine the deposit base of the traditional financial system, while the cryptocurrency 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 believes that with the resolution of the revenue structure issue, which was the biggest hurdle, discussions on the bill will now gain significant momentum. Especially given that a policy agreement, a key variable in the legislative process, has been reached, expectations for actual passage are also rising.

The cryptocurrency market structure bill is a comprehensive U.S. legislative attempt 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 highly likely to serve as a watershed moment in determining the future direction of U.S. cryptocurrency regulation.

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