Stablecoin Push Trumps Crypto Regulation Bill Amid Bank Fears
The Digital Asset Market Clarity Act, aimed at establishing better federal regulations for virtual assets and stablecoins, has stalled in the U.S. Senate after advancing through committee.
White House crypto adviser Patrick Witt attributed the bill's failure to retaliation from large banks over concerns that stablecoins could mimic traditional deposit interests.
The legislation included provisions constraining interest on stablecoins, but bank concerns persisted, with an advisory issued warning of probable deposit outflows to stablecoins.
Witt defended President Donald Trump's ethics regulations regulating crypto holdings, describing them as the most restrictive ever, and criticized senators' stock trading involving companies under their governance.