Recently, the movements surrounding U.S. cryptocurrency regulations have become more complicated. There is an important regulatory framework called the CLARITY Act, but opinions are divided between banks and crypto companies regarding the handling of stablecoin rewards.

In simple terms, crypto companies want to offer rewards of around 3-4% to secure users. On the other hand, banks are concerned that this could lead to deposit outflows and warn that up to $500 billion could flow into crypto platforms. If deposits decrease, lending capacity also drops, so the banks’ concerns are understandable.

The compromise proposed by the White House seems to involve limiting rewards to specific uses. In other words, it’s a limited compromise rather than applying to all stablecoin rewards. However, this compromise has not gained support from banks, and negotiations remain deadlocked.

This bill, which passed the House in July last year, was originally intended to establish a clear regulatory framework for the crypto market. It envisioned the CFTC overseeing digital commodities and the SEC regulating securities, with roles clearly divided. But the conflict between banks and crypto companies remains unresolved, and no compromise has been reached.

To break this deadlock, the SEC has held roundtable discussions with industry leaders, and various adjustments are being made. There is a need for a serious discussion between regulators and the industry on creating rules for digital assets. However, if these conflicts continue, the passage of this bill could be delayed until 2026.

How the compromise plan unfolds will likely be the key point moving forward. Both the banks’ concerns and industry demands have some basis, so a simple resolution seems unlikely.