US crypto firms propose compromise on stablecoin rewards in market structure bill

U.S. crypto firms have proposed a new compromise on the contentious issue of stablecoin compensation within the market structure bill known as the CLARITY Act, Bloomberg reported. The proposal includes measures to simplify the path for regional banks to issue stablecoins directly and a mandate requiring stablecoin issuers to deposit a portion of their reserves with these banks. However, a final agreement has not yet been reached. The banking industry has expressed concerns that if crypto exchanges like Coinbase or stablecoin issuers offer compensation on stablecoins, it could lead to customer fund outflows and negatively impact traditional banks. Negotiations between the crypto and banking sectors are currently underway at the White House and in Congress to find a resolution. U.S. Senate Banking Committee Chairman Tim Scott maintained an optimistic outlook, stating that the bill could strike a balance between the two industries. A prior private meeting among Senate Democrats was also reported to have yielded positive results.