US Senator Says Crypto and Banks Must Compromise for Bill to Move Forward

A U.S. Senate Democrat, Senator Angela Alsobrooks, says lawmakers are working on a compromise to advance crypto market structure legislation, but both the crypto industry and banks will need to make concessions.

Speaking at the American Bankers Association event, Alsobrooks, a member of the Senate Banking Committee, said that neither side can expect to get everything they want. “All of us will probably walk away just a little bit unhappy,” she said, emphasizing that aiming for perfection could stall progress. Her goal is to avoid leaving the crypto sector completely unregulated while also protecting the traditional banking system from risks like deposit outflows.

One of the key sticking points has been stablecoin yield payments, which banks want banned in upcoming legislation. Banking groups argue that these yields could pull money away from regular bank deposits and threaten financial stability. The existing GENIUS Act already barred stablecoin issuers from offering yield, but lawmakers knew this issue would need revisiting. Crypto advocates oppose banning yield, saying it is a core part of how exchanges attract users.

Alsobrooks reiterated that the bill must address stablecoin yield in a balanced way that prevents bank-like products from operating without proper protections. A recent survey commissioned by the American Bankers Association showed significant public support for limiting stablecoin yields if they pose risks to banks.

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