Crypto Industry Pushes Back Against Bank-Led Opposition to Regulation
The crypto industry is at odds with banks over proposed legislation aimed at regulating stablecoins and other digital assets. Banks have expressed concerns that the bill would lead to a 'deposit flight' from traditional financial institutions, but the crypto industry disputes this claim.
Kara Calvert, vice president of U.S. policy at Coinbase, stated that 'deposit flight is a farce, and banks are promoting fear, not facts.' She emphasized that lawmakers have a duty to protect consumers who benefit from competitive innovation.
The bill maintains strong support among Republicans, with the Trump administration backing it as a top priority. It remains unclear whether bank-generated concerns will be enough to sway a significant number of senators against the bill.
Several thorny issues remain unresolved, including an ethics provision that Democrats want to include in the bill to limit President Trump's ability to profit from his family's crypto businesses. If lawmakers can strike a bipartisan deal, the bill could gain enough Democratic support to overcome potential GOP defections.