Crypto, Bank Executives Head To Capitol Hill To Review Stablecoin Deal Details This Week: Report

• The discussions follow a tentative deal drafted by bipartisan lawmakers and White House officials.
• The treatment of stablecoin rewards remains the central issue dividing banks and crypto firms.
• The debate over stablecoin yield has left the Senate Banking Committee’s half of the market structure bill in limbo since January, when it was originally slated for a markup in the Senate.

Cryptocurrency stakeholders and bank executives are reportedly scheduled to meet the Senate Banking Committee on Monday and Tuesday to discuss the new stablecoin deal. 

According to a Crypto in America report, representatives from the cryptocurrency industry will be meeting with the committee on Monday, and banking representatives will review the deal on Tuesday.

The news comes after Politico reported on Friday that Senator Thom Tillis (R-NC), Senator Angela Alsobrooks (D-MD), and White House officials had drafted a tentative agreement that could put the debate over stablecoin rewards to rest.

Stablecoin Rewards Debate Remains Key Flashpoint

The market structure bill, which complements the Senate Agricultural Committee’s half of the CLARITY Act, has been stuck in a stalemate since January, with banks and cryptocurrency firms disagreeing over how stablecoin rewards should be treated. 

While advocates from the cryptocurrency side said that stablecoins help drive adoption, banks warned that offering rewards on stablecoin holdings could result in deposit flight from traditional savings accounts.

Coinbase (COIN) CEO Brian Armstrong has been the most vocal advocate for allowing stablecoin rewards to continue. The company currently has a 50-50 revenue share agreement with Circle (CRCL) for interest income earned on USDC (USDC) holdings. 

Coinbase, Circle In Focus Amid Policy Talks

COIN’s stock rose 1.5% at market open amid broader strength in the equity and cryptocurrency markets. Bitcoin (BTC) climbed back above $70,000 following President Donald Trump’s comments of “productive” talks with Iran over the weekend, which eased oil prices. Retail sentiment around Coinbase on Stocktwits remained in ‘bearish’ territory over the past day, while chatter fell to ‘normal’ from ‘high’ levels.

Many users on the platform expect progress on the CLARITY Act to be a positive catalyst for COIN’s stock. One forecast COIN’s stock could cross $220 if the stablecoin deal comes through.

Others held similar sentiment for CRCL’s stock, expecting clarity on stablecoin rewards to be a bullish development for the stablecoin issuer.

However, CRCL’s stock edged 0.5% lower at market open. Retail sentiment around the stablecoin issuer remained in ‘bullish’ territory over the past day, while sentiment around USDC improved to ‘neutral’ from the ‘bearish’ zone over the past day.

Read also: Bitcoin Price Shoots Above $70,000 After Trump Says US-Iran Held ‘Productive’ Talks

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