Stablecoin Showdown: Crypto vs. Banks in the U. S. Senate

The U. S. Senate is stuck in a debate about stablecoins. Crypto groups and big banks can't agree on whether users should get rewards for holding stablecoins. The crypto side says yes, while the banks say no. The banks think rewards could hurt traditional banking. They even wrote a paper saying so. The crypto group, Digital Chamber, fired back with their own set of rules. They want to keep some rewards for users who help with transactions or provide liquidity. The banks want a two-year study on stablecoins, but the crypto group says that's okay as long as it doesn't lead to new rules right away. The crypto group is willing to give up on rewards for just holding stablecoins, but they want to keep rewards for active users. They think this is a fair compromise.The White House wants both sides to find a middle ground by the end of the month. But so far, the banks aren't budging. The crypto group hopes their new rules can restart the talks. They think they can help bring both sides together because they have members from both industries. The crypto group highlighted two types of rewards they want to protect: those for providing liquidity and those for participating in the ecosystem. They say these are important for decentralized finance (DeFi). The White House is pushing for a compromise, but it's not clear if the banks will change their stance. The crypto adviser to President Trump said another meeting might happen next week. He hopes both sides can find a way to agree.