US Senate Blocks Crypto Bill Amid Bank Opposition to Stablecoins
White House crypto adviser Patrick Witt has pointed to bank opposition as the main reason behind the stalled Digital Asset Market Clarity Act in the US Senate.
The legislation aimed to introduce better federal regulations for virtual assets, including stablecoins, and divide regulatory supervision between federal agencies.
Witt stated that large banks' concerns over probable deposit outflows to stablecoins were a crucial factor behind the bill's failure, despite provisions constraining interest on stablecoins being included in the legislation.
The US government is exploring ways to promote dollar-backed stablecoins through joint ventures involving the Treasury Department, State Department, and other agencies, which could increase demand for US Treasuries and bolster the role of the dollar in digital financial markets.