Progress in US Senate crypto legislation, Wall Street giants gather to discuss regulatory framework

【Blockchain Rythym】On December 12th, there was news from the US Senate Banking Committee.

Chairman Tim Scott just finished a meeting with top executives from several major banks, and he said there has been “substantial progress” on the cryptocurrency legislation. What does this mean? It’s the big bill that aims to set regulations for the entire digital asset industry, and it might actually be coming to fruition.

On Thursday, Scott summoned Brian Moynihan from US Bank, Jane Fraser from Citibank, and Charlie Scharf from Wells Fargo. These three are influential figures on Wall Street. What was discussed? How to clarify the authority distribution between regulators like the SEC and CFTC, so that the crypto sector has clear rules to follow.

Interestingly, the meeting was split into two groups—first with Democrats, then with Republicans. Insiders say both sessions were quite amicable, indicating that the two parties are finally able to sit down and discuss certain issues constructively.

What specifics were discussed? Hard topics like profit sharing, DeFi regulation, and anti-money laundering standards were all on the table. The banking industry is actually a bit worried— they feel the GENIUS Act passed this summer isn’t strict enough and has loopholes.

Where is the biggest point of contention? It’s about stablecoin issuers paying interest to holders; the restrictions aren’t tight enough. The banking association believes that if this continues, stablecoins might not just be simple payment tools anymore—they could become attractive stores of value and even engage in lending. This would be a “market distortion” for traditional banks, essentially taking away their business.

Another issue: the restrictions set by the GENIUS Act can be bypassed quite easily by exchanges and brokerages. That’s awkward— the original intent of the legislation was to control risks, but it might end up being ineffective.

It looks like the new bill will address these issues with amendments. The wild growth of digital assets is finally being squeezed into a tighter framework.