U.S. Senator Cynthia Lummis is urging American banks to adopt stablecoins and digital assets, arguing that resistance from traditional financial institutions is slowing innovation at a time when the crypto market structure bill remains delayed.
Banks and Stablecoins as New Financial Products
In a recent television interview, Lummis said banks are overlooking the commercial potential of digital assets. She highlighted stablecoins as a new payment mechanism and pointed to digital asset custody as an additional service banks could offer existing customers.
According to Lummis, stablecoins could significantly reduce transaction costs and settlement times for both domestic and cross-border payments. She emphasized that adoption would expand consumer choice while opening new revenue streams for banks rather than undermining them.
Stablecoin Yield Disputes Delay Crypto Regulation
Stablecoins have become a central point of disagreement in negotiations over U.S. crypto market structure legislation. Banking groups oppose allowing crypto platforms to offer yield on stablecoin balances, arguing it could divert deposits away from traditional banks, especially smaller community institutions.
Recent draft proposals include provisions that restrict interest payments on idle stablecoin holdings. These measures have drawn pushback from major digital asset companies, contributing to prolonged legislative delays.
Despite regulatory uncertainty, the U.S. dollar stablecoin market has grown to approximately $290 billion. Policymakers have suggested that with supportive legislation, the sector could expand to trillions of dollars within the next few years.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.