CEOs of three major US banks personally attend Senate consultations, focusing on stablecoin interest payment regulations

Bank of America (BoA) CEO Brian Moynihan, Citigroup (Citigroup) CEO Jane Fraser, and Wells Fargo (Wells Fargo) CEO Charlie Scharf are scheduled to meet with several bipartisan senators this Thursday (12/11). The meeting, arranged by the large bank coalition Financial Services Forum, will primarily focus on issues such as stablecoin interest payments, banks’ competitive positioning in the crypto market, and how to prevent crypto assets from being used for illegal activities.

Multiple Bank Executives to Meet with Senators, Focusing on Stablecoins and Illicit Use

According to reports, the CEOs of the three major banks will hold a closed-door meeting with bipartisan senators to discuss the crypto market structure bill, which is about to enter the voting stage. The meeting is led by the Financial Services Forum, and invited senators are those directly involved in negotiating the crypto market structure bill.

The meeting is expected to revolve around several core topics, including the banking industry’s opposition to paying interest on stablecoins, banks’ desire to maintain fair competition in the crypto sector, and how to strengthen the regulatory framework to prevent illicit funds from using cryptocurrencies.

Bipartisan Negotiations Continue, Regulatory Boundaries and Illicit Use in Focus

The bipartisan negotiation group has been meeting behind closed doors for several weeks, attempting to narrow differences, especially on how to prevent crypto assets from becoming a hotbed for illegal activities.

Another important unresolved issue is the clear division of which crypto assets should be regulated by the Commodity Futures Trading Commission (CFTC) and which should be overseen by the Securities and Exchange Commission (SEC). Negotiations on these two key points are still ongoing.

Stablecoin Interest Remains Contentious, Banks Worry About Widening Competitive Disadvantage

Large banks have been communicating their concerns to Congress for several months, arguing that if crypto trading platforms are allowed to pay interest or rewards on stablecoins, it would effectively draw funds away from the banking system into the crypto market.

Such a situation could erode the competitiveness of traditional bank deposits, making this a crucial topic for discussion during the meetings.

Legislation Stalled, Committee Vote Could Happen as Soon as Next Week

Senate Banking Committee Chairman Tim Scott has stated he hopes to hold a committee vote on the crypto market structure bill as soon as next week. However, given current procedures, it is unlikely the full Senate will complete a final vote within this year.

Meanwhile, the Senate Agriculture Committee, which oversees the CFTC, is still working on its portion of the legislation, requiring more coordination between both sides. Democratic Senators Mark Warner and Kirsten Gillibrand, who are involved in the negotiations, told the media that bipartisan talks have made substantive progress, but there is still no clear timetable for when the negotiations will conclude.

This article “CEOs of Three Major US Banks Attend Senate Talks, Focusing on Stablecoin Interest Payment Regulations” first appeared on Chain News ABMedia.