Bank of America (BoA) CEO Brian Moynihan, Citigroup CEO Jane Fraser, and Wells Fargo CEO Charlie Scharf are expected to meet with several bipartisan senators this Thursday (12/11). This discussion is organized by the Financial Services Forum, a large bank alliance, and will primarily focus on interest payments for stablecoins, the competitive position of banks in the cryptocurrency market, and how to prevent crypto assets from being used for illegal activities, among other related topics.
Senior executives from multiple banks will meet with senators to focus on stablecoins and illegal uses
According to reports, the CEOs of three major banks will hold closed-door talks with bipartisan Senate members, focusing on the upcoming vote on the crypto market structure bill. This meeting is led by the Financial Services Forum, and the invited senators are those directly involved in negotiating the cryptocurrency market structure bill.
The meeting is expected to revolve around several core issues, including the banking industry's opposition to interest payments on stablecoin, banks' desire to maintain fair competition in the crypto space, and how to strengthen regulatory frameworks to prevent illicit funds from utilizing cryptocurrencies.
Continuing bipartisan negotiations, regulatory boundaries and illegal uses have become focal points.
A bipartisan negotiating group has been trying to narrow the differences in closed-door meetings for several weeks, especially on how to prevent crypto assets from becoming a breeding ground for illegal activities.
Another important aspect that has yet to be decided is clearly delineating which crypto assets should be regulated by the Commodity Futures Trading Commission (CFTC) and which should be under the Securities and Exchange Commission (SEC). Negotiations on these two major parts are still ongoing.
Interest on stablecoins has become a controversy, with banks concerned about the widening competitive disadvantage.
Large banks have been communicating with the U.S. Congress for several months, expressing that if cryptocurrency trading platforms can pay interest or rewards on stablecoins, it would attract funds from the banking system to the crypto market.
This situation could undermine the competitiveness of traditional bank deposits, leading banks to list this issue as one of the important discussion topics in their meetings.
The legislative process is at a standstill, with the committee vote expected as soon as next week.
Senate Banking Committee Chairman Tim Scott stated that he hopes to conduct a vote on the crypto market structure draft in the committee as soon as next week, but given the current procedures, it seems unlikely that the Senate will complete the final vote this year.
On the other hand, the Senate Agriculture Committee, which oversees the CFTC, is still handling its portion of the bill, and both sides need more time for coordination. Democratic senators Mark Warner and Kirsten Gillibrand have both stated to the media that bipartisan negotiations have made substantial progress, but they cannot yet provide a clear timeline for when the negotiations will conclude.
This article discusses the CEOs of three American banks who visited the Senate for negotiations, focusing on the regulatory framework for interest payments on stablecoins, first appearing in Chain News ABMedia.