US Cryptocurrency Legislation Update: Stablecoin Rewards Dispute Narrowing

The US administration's efforts to resolve the stalemate over cryptocurrency legislation have made significant progress in recent days. A key aspect of this dispute has been the issue of stablecoin rewards, which crypto companies believe should be allowed as part of their business model. Banks, on the other hand, have expressed concerns that such rewards could trigger deposit outflows and pose a risk to the traditional financial system.

According to sources close to the negotiations, the debate has narrowed to whether or not to offer rewards tied to specific activities, such as trading volume or network participation. The White House Crypto Council's Executive Director, Patrick Witt, has stated that they aim to resolve the issue by March 1st and are optimistic about reaching an agreement.

The potential resolution of this issue could have a significant impact on the cryptocurrency market, with some predicting it could create a domino effect and accelerate the process of market structure regulation. If an agreement is reached, it could pave the way for the rescheduling of a postponed Senate Banking Committee hearing.