U.S. crypto companies are pushing a new compromise proposal aimed at breaking the regulatory deadlock surrounding stablecoin issuance, signaling a growing willingness to work with traditional banks rather than around them. The discussions are unfolding as lawmakers consider the CLARITY Act, a bill expected to shape the future of stablecoin regulation and determine how digital dollars integrate into the broader financial system.
At the center of the proposal is a model that would bring regional and community banks directly into the stablecoin ecosystem. Under the plan, stablecoin issuers would be required to hold their reserves at regulated regional banks instead of operating entirely outside the traditional banking sector. Supporters argue that this structure could address concerns about financial stability while allowing innovation in digital payments to continue.
The idea has gained visibility after being highlighted by Binance, which summarized the discussions through its official news channels. According to analysis shared by NS3.AI, banking groups remain wary that incentivizing stablecoin usage could still encourage customers to move funds away from conventional deposits. That concern has been one of the biggest obstacles to regulatory progress.
Banks fear that if stablecoins offer higher yields or greater flexibility, they could accelerate deposit flight, particularly from smaller institutions that rely heavily on local customer balances. From their perspective, stablecoins blur the line between payments, deposits and investment products, potentially undermining a core funding source for the banking system. Crypto firms counter that stablecoins already exist at scale and that clearer rules would actually reduce risk rather than amplify it.
The proposed compromise reflects a shift in tone. Instead of positioning stablecoins as competitors to banks, crypto companies are framing them as complementary infrastructure. By placing reserves inside regulated banks, stablecoin issuers would provide new sources of deposits while remaining subject to oversight. Regional banks, in turn, could gain relevance in a digital payments landscape that is increasingly global and blockchain based.
Lawmakers appear receptive to this middle ground. Senate leaders involved in the negotiations have expressed cautious optimism that an agreement can be reached which balances innovation with systemic safeguards. The goal is to avoid pushing stablecoin activity offshore or into regulatory gray zones, while still protecting consumers and the financial system.
The timing is critical. Stablecoins are now widely used for cross border payments, trading settlement and corporate treasury operations. Their role has expanded beyond crypto markets into mainstream finance, making regulatory uncertainty increasingly costly. Prolonged gridlock risks slowing adoption in the United States while other regions move ahead with clearer frameworks.
If adopted, the compromise could reshape how stablecoins are issued and managed, anchoring them more firmly within the banking system without stripping away their efficiency. While key details remain unresolved, the proposal highlights a broader trend toward cooperation rather than confrontation. For regulators, banks and crypto firms alike, the challenge now is turning that shared intent into durable policy.
